Living in a community property state such as California means agreeing to the property division laws of its family court system. Under California Family Code Sections 760 and 761 any property or assets acquired during a valid marriage will be divided equally between the spouses during a divorce.1
However, what happens if your property was acquired in another state but you file for divorce in California? The California Court can make an order regarding your marital property in other states. Any property you acquire during your marriage in a non-community property state that would have been considered community property in California is considered “quasi-community property”.2
How is Quasi-Community Property Treated During a Divorce Proceeding (California Family Code Section 125)?
According to California Family Code Section 125, Quasi-community property is defined as “all real or personal property, wherever situated, acquired in any of the following ways:
(a) By either spouse while domiciled elsewhere which would have
been community property if the spouse who acquired the property had
been domiciled in this state at the time of its acquisition.
(b) In exchange for real or personal property, wherever situated,
which would have been community property if the spouse who acquired
the property so exchanged had been domiciled in this state at the
time of its acquisition.”3
In other words, any property acquired by either spouse in a non-community property state during the marriage is treated as community property, but only if the divorce takes place in a community property state (i.e., California). If the divorce takes place in a non-community property state (e.g., Oregon), jurisdiction belongs to the court within that state.
For example, let’s say you and your spouse get married in Oregon. For the next several years you establish your life together in Oregon, where you buy a home and a vehicle, earn wages, and purchase all of your other assets. You then both decide to move to California a few years later. After several years of marriage, one of you decides that the marriage has run its course. You decide to file for divorce in California, where you and your spouse now reside. Thus, all property acquired in Oregon is treated as community property during the divorce.
Community property in California is considered all property acquired during a marriage before the divorce. The only exception is property received as a gift or inheritance by one of the spouses.
For example, if you bought a car in Oregon during your marriage for $5,000 with your wages from your job, the car would still be considered community property if you file for divorce in California. This is because it was acquired during the marriage with community funds. Although community property law is generally complex, the rule is that it should be divided equally during a divorce based on you and your spouse’s income and other assets.
Call the Divorce Lawyers at Wallin & Klarich Today
Quasi-community property can be a complex issue during your divorce proceedings. You or your spouse’s assets can still be considered community property if they were purchased in a non-community property state. Having an experienced and knowledgeable family law attorney is vital to helping you make this determination and getting you the best outcome in your divorce. The attorneys at Wallin and Klarich have been successfully handling all divorce matters for over 30 years.
With offices located in Orange County, San Bernardino, Los Angeles, Torrance, Riverside, West Covina, Victorville, Ventura, San Diego and Sherman Oaks, one of our skilled attorneys is available to help you no matter where you work or live.
Call us today at (888) 749-7428 for a free phone consultation. We will get through this together.
