The property division process during divorce is one aspect of the legal case that can quickly become contentious. It’s critical to understand what this process entails so you can be prepared for each step.
Individuals who are going through a divorce in California should know that this state uses community property laws to divide assets. Understanding these three things may help to make the process easier.
1. Prenuptial agreement matter
If you and your spouse signed a prenuptial agreement, it will play a major role in how property is divided. A valid agreement can outline exactly how assets and debts should be handled, which may simplify or even override the standard division process. Courts typically uphold these agreements as long as they were signed voluntarily and fairly, so it’s critical to understand exactly what the agreement means.
2. Assets and debts must be divided
In a community property state like California, most assets and debts acquired during the marriage are considered jointly owned, regardless of whose name is on the title or account. This means everything from homes and cars to credit card balances and retirement accounts must be split evenly unless an exception applies. Separate property, such as inheritances or gifts, may not be subject to division if properly documented.
3. Your credit score may be affected
Even though divorce divides responsibility for debts, it doesn’t automatically remove your name from joint accounts. If your ex fails to make payments on shared debts, your credit can still take a hit. It’s important to close or refinance joint accounts when possible and keep an eye on your credit reports during and after the process. In some cases, liquidating assets to pay off debts may help to prevent potential issues with missed payments and the effects of them.
Seeking assistance from someone who understands the divorce process may help you to learn what decisions you’ll have to make and the options you have for each. It’s critical that you do what’s in your best interests because each decision can affect the rest of your life.