Property Division issues include the following:

• Community Property
• Separate Property
• Debts

Determination of Property Rights

Property division can be a complex and time consuming process. The towels hanging in the bathroom may say "HIS" and "HERS," but in a community property state such as California both towels usually are "THEIRS." Because the lines of his and hers are blurred, sorting out the ownership of the marital assets can be difficult.

Community property refers to all earnings, profits from earnings and those assets purchased by the couple during marriage. Husbands and the wives have an equal interest in this property, even though it may have been bought with the earnings of only (or primarily) one of the partners. The same is true with respect to debts incurred during the marriage.

Moreover, separate property must also be confirmed to the parties. Separate property is normally characterized as property owned prior to the marriage, received during the marriage as a gift or bequest to one of the parties individually, or acquired after the marriage, which has been kept separate and identifiable.

Property division can have far-ranging and long-term effects. Property includes retirement and pension plans, IRAs, and other investment options. Each must be characterized and divided. Loans, liens, notes, and mortgages, must be accounted for, together with the properties that they encumber. Sale or transfer of some properties may substantial tax consequences for either or both parties.

Generally, if a couple cannot agree how to divide their assets and obligations (their property, money, and debts), they can have their attorneys guide them into creating a fair settlement. Competent Attorneys with good negotiation skills and a clear understanding of the laws that govern, can be very helpful in reaching settlement. If the parties cannot reach agreement on the division of property and debts, the court parties will present their dispute and claims to the judge. The judge will then use the provisions of the law to determine how to divide the property. The judge will award each spouse a percentage of the total value of the property. (It is illegal for either spouse to hide assets in order to shield them from property division.)

The settlement process can be accomplished quickly and efficiently if the parties can cooperate and work toward reaching a settlement, or it can become a long and expensive process if the court must consider all the issues and make the divisions.

At issue may include the following:

Property Settlements

• Pre-Nuptial Agreements
• Post-Nuptial Agreements
• Marital Settlement Agreements
• Stipulated Judgment

Retirement

• Pensions
• Individual Retirement Accounts (IRA)
• Qualified Domestic Relations Orders (QDRO)