How to Navigate Community Property Laws in California | Los Angeles Divorce

Posted by Tim Blankenship on

 

How to Navigate Community Property Laws in California

I’m Tim Blankenship of Divorce661. If you’re facing a California divorce, one of the most important things to understand is how community property works — and how it affects your home, retirement, savings, and even debt. In this article I break down the essentials, share a real-life example, and explain practical steps you can take to protect your interests and settle fairly.

What Does “Community Property” Mean in California?

In California, community property generally means that anything acquired during the marriage is owned equally by both spouses. That includes:

  • Income earned during the marriage
  • Homes and real estate purchased while married
  • Cars and other titled property
  • Retirement accounts and benefits accumulated during marriage
  • Debts incurred during the marriage (credit cards, loans, etc.)

“Anything acquired during marriage is split 50/50. It doesn’t matter who earned it or whose name it’s under.”

Ownership on a title or whose name appears on an account does not, by itself, determine whether an asset is community or separate property.

What Is Separate Property?

Not everything is community property. Examples of separate property include:

  • Assets owned prior to marriage
  • Gifts or inheritances received by one spouse during the marriage (if kept separate)
  • Property acquired with only separate funds, properly traced

Determining whether an asset is separate or community can be straightforward in some cases, but it often requires careful documentation and sometimes negotiation or litigation.

A Real-Life Example

We worked with a couple who had been married for more than 15 years. One spouse believed assets held in their name were solely theirs. After reviewing the facts, we explained that home equity, retirement accounts, and debt accumulated during the marriage had to be treated as community property and divided equally.

Once those assets and liabilities were correctly identified and documented, we drafted a settlement agreement that both parties accepted — and the court approved it without issue. That agreement avoided costly disputes and made the divorce process far more predictable and fair for both sides.

How to Protect Yourself and Avoid Costly Mistakes

Key practices that help prevent surprises during property division:

  • Keep clear records of pre-marriage assets, gifts, and inheritances.
  • Document transactions that mix separate and community funds (trace funds if necessary).
  • Avoid making unilateral changes to titles or accounts without legal advice.
  • Consult a knowledgeable professional early — before agreements are signed or property transferred.

How Divorce661 Helps

At Divorce661 we focus on clear, fair, and court-approvable agreements. Our services include:

  • Identifying what is community property vs. separate property
  • Drafting settlement agreements that are fair and approved by the court
  • Handling the property division process from start to finish
  • Offering flat-fee divorce services across California to control costs

We make the process efficient and as drama-free as possible so you can move forward with certainty.

Practical Steps to Take Now

  1. Inventory your assets and debts, noting when each was acquired.
  2. Gather documentation: titles, account statements, retirement summaries, and records of gifts or inheritances.
  3. Talk to a qualified professional who understands California community property law.
  4. Consider a negotiated settlement to save time and costs — but ensure it’s drafted properly and court-approvable.

Conclusion

California’s 50/50 community property rule can be surprising if you don’t understand it. Anything acquired during marriage — income, real estate, retirement, and even debt — is typically divided equally, regardless of whose name appears on the title. Knowing the difference between community and separate property and documenting assets properly can prevent expensive surprises.

If you want help navigating property division and crafting a fair settlement, schedule a free consultation with us at Divorce661. We’ll make sure your assets are identified correctly and divided fairly so you can move forward with confidence and without drama.

Visit Divorce661.com to schedule your free consultation and learn more about flat-fee divorce services across California.

How to Handle Inheritance in a California Divorce | Los Angeles Divorce

Posted by Tim Blankenship on

 

How to Handle Inheritance in a California Divorce

I’m Tim Blankenship from Divorce661. If you’ve inherited money in California and you’re worried your spouse will get half in a divorce, this article explains what you need to know. I’ll walk you through how California treats inheritances, common mistakes that can convert them into community property, a real client example, and practical steps you can take to protect what’s yours.

Why inheritance matters in a divorce

In California, the default rule is straightforward: inheritance is usually separate property. That means money or assets you inherit—whether before or during your marriage—generally remain yours alone and are not automatically split with your spouse in a divorce.

However, there’s a big caveat: what you do with the inheritance after receiving it matters. If you mix it with marital assets or use it for joint expenses, it can lose its separate status. Understanding that distinction can prevent unpleasant surprises at settlement or trial.

Separate property vs. community property — the core differences

  • Separate property: Property owned by one spouse before marriage or acquired during marriage by gift or inheritance. It remains the separate property of that spouse unless converted.
  • Community property: Property acquired during marriage (with some exceptions) that is presumed to be owned equally by both spouses.

Inheritance starts as separate property. Community property is shared. But actions taken after receiving an inheritance can change how a court views it.

How commingling can change the status of an inheritance

Commingling occurs when separate property is mixed with community property so that it becomes difficult to identify what belongs solely to one spouse. Common examples include:

  • Depositing inherited funds into a joint bank account.
  • Using inherited money to pay household bills or shared living expenses.
  • Using inheritance to make improvements on the family home (a community asset if acquired during marriage).
  • Failing to keep records that trace the original inheritance funds.

Once separate funds are commingled without clear records, a court may treat those funds (or the increase in value they caused) as community property—or at least require tracing to determine what remains separate.

Real-life example: tracing inherited funds

Here’s a simplified version of a case we handled: a client inherited $100,000 and used a portion for home improvements. Because the improvements benefited the community asset (the marital home), some of that inherited money was at risk of being treated as community property.

What we did:

  • Carefully traced the source of the funds to show which dollars were inherited and which were community earnings.
  • Documented the amounts used for improvements and the remaining separate funds.
  • Protected the portion that remained separate and addressed the portion that became community property in the divorce paperwork.

Tracing and documentation allowed us to preserve as much separate property as possible and make the outcome clear and defensible in court.

Practical steps to protect your inheritance

Follow these best practices to reduce the risk of losing separate property status:

  1. Keep inherited funds in a separate account titled in your name only.
  2. Avoid depositing inheritance into joint accounts or using it for joint living expenses.
  3. If you use inherited funds for something that benefits the marriage (like home repairs), document the transaction and be prepared to account for the community benefit.
  4. Keep clear records—bank statements, deposit slips, invoices, and receipts—that trace the inherited funds from receipt through any subsequent use.
  5. Consider a written agreement or transmutation if both spouses agree to change the character of the asset—this should be drafted carefully and signed.
  6. Work with a family law attorney early to identify and protect separate property before a dispute arises.

Key takeaway

Don’t leave your assets to chance.

Inheritance is usually separate property in California, but careless handling—especially commingling—can change that. The best protection is clear documentation, careful financial handling, and legal guidance. If you inherit cash or property during your marriage, act proactively to preserve your rights.

Need help?

If you’ve received an inheritance and want help protecting it during a California divorce, Divorce661 can assist. We identify what’s separate versus community property, trace funds when necessary, and help ensure your divorce judgment clearly reflects those distinctions. Visit Divorce661.com to schedule a free consultation and get specific advice tailored to your situation.