Division of Property – How Does the Court Divide the Property?

The divorce court has significant discretion to divide community property so that it produces a net equal division to the parties. The divorce court may divide property in one of four ways:

In-Kind Division

For property that is amenable to an equal division, such as bank accounts or insurance proceeds, the court will split the amount in half and award one half to each party.

Asset Distribution

For a community asset that cannot be equally divided in its present form, the court may request an appraisal of each community asset and distribute the property so that a net equal division is accomplished. Courts generally do not favor this approach because of how time-consuming it can be, but the parties may request this type of division if several community assets are unique or hold sentimental value to a party or the parties.

Sale and Division of Proceeds

For a community asset that cannot be equally divided in its present form, the court may order the asset sold and split the proceeds between the two parties. Courts generally favor this approach if an in-kind division is not possible, but the parties may object under certain circumstances, such as a community business that both parties are willing to co-operate even after divorce.

Deferred Partition by Conversion to Tenancy in Common

The court may convert a community asset into an asset held by both parties as tenants in common, then divide the proceeds between the parties once the asset is sold. This method of division occurs most often when the community asset is a house, which usually cannot be sold immediately.

If you or someone you know is considering divorce, you will need a skilled Southern California divorce lawyer to advise you of your rights and to protect your property interests. At Wallin & Klarich, we have helped people with property division at divorce for over 30 years.  Call us today at (888) 749-7428. We will be there when you call.