What Does “Community Property” Mean?

If you’re going through a divorce or legal separation in California, it’s important to understand how your property will be divided. California is a community property state. That means anything you and your spouse earn or buy during the marriage is generally considered owned by both of you equally—even if the account or title is only in one person’s name.

What Counts as Community vs. Separate Property?

The law splits property into two categories:

• Community property: This includes income, retirement accounts, cars, houses, and even debts that you or your spouse got while married.
• Separate property: This includes things owned before the marriage or received as a gift or inheritance. Anything gained after the official separation date is also usually separate.

If community and separate property get mixed together—for example, if you use your paycheck (community money) to pay the mortgage on a house you bought before marriage—it can be tricky to figure out who gets what. These are called commingled assets.

Why the Date of Separation Matters

The date of separation marks when the marriage legally starts to end. Anything earned after that date usually stays with the person who earned it. If you're unsure about how to prove when you separated, you may need to show texts, emails, or documents that show when one of you moved out or said the marriage was over.

How Are Assets Divided?

In most cases, California courts will try to divide everything 50/50. This doesn’t always mean you split each item in half, but that both people walk away with about the same total value. You’ll need to figure out how to divide things like:

• Bank accounts and cash
• Retirement plans (CalPERS, CalSTRS, 401(k), etc.)
• Cars and other vehicles
• Houses and other real estate
• Business interests

To make fair decisions, both sides usually need to exchange financial disclosures as required by California Family Code §§ 2104 and 2105.

What About Debts?

Just like assets, debts from during the marriage are usually shared. This includes credit cards, mortgage loans, student loans, and medical bills. If one person racks up debt after separation that doesn’t benefit the other, that debt might be their own responsibility.

Common Complications

Sometimes things get more complicated. Here are a few examples:

• Student loans: Usually stay with the person who took them out, even if they were borrowed during the marriage.
• Inherited money: Can remain separate, unless it was combined with marital money.
• Homes bought before marriage: If the mortgage was paid with community funds, a Moore/Marsden calculation might apply.

These situations often need legal or financial advice to figure out the fairest outcome.

Can You Avoid Going to Court?

Yes, absolutely. Many couples choose to work out the division of property themselves through a Marital Settlement Agreement (MSA). If both people agree, you can avoid a court battle and simply submit your signed agreement to the judge for approval. You might also work with a mediator or legal document assistant to prepare everything properly.

Tips for Protecting Your Rights

Here are some steps you can take to protect yourself during a divorce:

• Make a list of all assets and debts, even if they’re only in one name.
• Get recent statements for your accounts, including bank, credit, and retirement plans.
• Keep records of any large purchases, sales, or loans.
• Stay organized and keep copies of all court forms and filings.

You can use the California Courts self-help site to download forms and read about what the law requires.

We Can Help You Divide Your Property Fairly

At CA Paralegal Services, we help California clients draft fair and complete divorce agreements, financial disclosures, and property division forms. Whether you're handling things peacefully or facing challenges, we’ll help you prepare the right documents without the cost of a full attorney.

Let us help you save time, reduce stress, and avoid legal mistakes. You can book a free consultation with our team today.

→ Schedule Your Free Divorce Property Consultation