Divorce and Community Property Settlement

Divorce is always a painful experience; however, one of the most difficult aspects of the process is division of property.  These issues are not generally easy to determine and require a great deal of give and take by the parties.  Most states today are equitable distribution states, and only 20% still hold a community property statute. These laws make a big difference in establishing a community property settlement.

Property Division in Divorce Settlement

Most divorces include an agreement reached by the parties outside of court, either independently or with the help of attorneys and unbiased mediators, stating how the marriage property is to be divided.  However, if such an agreement cannot be reached, the parties will have to go before a judge for help with dividing community property, based on their state laws:

Community Property

Each party is granted the value of half the property.  Not every item is equally divided, but elements are granted to each to provide equal shares.

Equitable distribution

The judge generally grants a greater portion of the property to the party with the higher income, often 2/3 to the wage earner and 1/3 to the spouse

There can be items that are determined to be separate property, which are inherited, purchased, or brought to the marriage by only one spouse.  However, even if separate property was brought into the marriage, if it was enhanced, used, or of benefit to both partners, it can, either in whole or in part, become community property.  The family home can be a difficult element of property to be divided.  If there are children, the home may be granted to the parent with custody. 

Community Property Debts

The community property debts still owed by the parties must also be divided in divorce proceedings.  In some cases, a court will award one bill, such as a credit card bill, to one party and another to the other party.  It may be important to end all joint credit card authorizations and co-signing responsibilities upon the granting of the divorce decree to avoid additional debts to be created for the other party to pay after the divorce.

Community Property Legal Help

It can be difficult to make these kinds of decisions without the help of an experienced divorce settlement lawyer.  Emotions can cloud responses of the individuals, so an unbiased legal expert can make the difference between a long, drawn out conflict or a quick resolution.