Dividing property is one of the most complex aspects of divorce. Because of its complexity, many people wonder, Can you divorce without splitting assets? California law generally requires an equal division of marital property.
However, certain circumstances, including prenuptial agreements, marital agreements, and strategic divorce negotiations, can allow couples to finalize a divorce without dividing assets. Whether or not this is available to you depends on the assets and how you and your spouse have used them.
At the Law Offices of Ali Yousefi, P.C., we provide experienced, strategic legal representation for individuals navigating divorce and property division in California. We understand the complexities of California’s divorce laws and offer compassionate, dedicated support to help our clients fight for what matters to them.
Whether you need guidance on negotiating a property settlement or protecting separate assets, our team is here to help you every step of the way.Â
Marital Property in California
In California, property may be community (i.e., marital property) or separate (i.e., nonmarital property). Community property includes:
- Assets either spouse acquired during the marriage,
- Debts either spouse incurred during the marriage,
- Savings or retirement accounts opened during the marriage, and
- Income generated from community property.
Separate property includes:
- Assets owned by either spouse before marriage,
- Inheritances one spouse receives,
- Gifts given exclusively to one spouse, and
- Items identified as separate in an agreement signed by both spouses.
Community and separate property can become mixed together, which is called commingling assets. When separate and community assets become commingled, determining ownership can become complicated. As a result, most commingled assets become community property, even if the property was originally separate and the spouses did not intend to change the property’s characteristics.
Asset Division in Divorce in California
California has strict rules about asset division in divorce, generally requiring an equal split of marital property. As a result, unless spouses reach an agreement outside of court, a judge divides community assets equally between the spouses.Â
Factors That Influence Property Division
Several factors can influence property division, including:
- The nature and value of assets, including how easy to divide they are;Â
- Debts, liabilities, and who incurred them;Â
- Whether assets are community, separate, or commingled; andÂ
- Preexisting agreements between spouses, such as agreements made before or during the marriage.Â
Absent significant wrongdoing that affected the value of community property, courts typically divide community property equally.
Property Disclosure and Consequences for Hiding Assets
When filing for divorce, spouses must disclose all their property and debt. When judges determine how to divide assets, they rely on the spouses to provide documentation showing which assets are separate and which are community.
Hiding or concealing assets can lead to serious consequences, including:
- Financial penalties levied against the concealing spouse,
- Shifting a larger share of known assets to the spouse who did not conceal assets,
- Loss of credibility in court, or
- Potential fraud claims against the concealing spouse.
To avoid these consequences, providing full and accurate financial disclosures during the divorce process is essential.
When Is Division of Assets in Divorce Mandatory?
While spouses can negotiate how they divide property, some circumstances make the division of assets in divorce unavoidable. Circumstances that may require asset division, despite spousal preferences, include:
- Intermingled funds—if separate property has been mixed with marital assets in a way that makes ownership unclear, courts may classify it as community property;
- Joint ownership—assets such as real estate, bank accounts, or businesses jointly owned by both spouses are usually divided; and
- No agreement between spouses—when spouses cannot agree on property division, the court generally requires a 50/50 split.
Generally, if it is unclear who owns an asset, the court will conclude that it is community property that must be divided per California law.
How to Divorce Without Splitting Assets
Despite California’s strict community property laws, spouses may avoid splitting assets through an agreement between the spouses. However, even in cases where the spouses sign an agreement, if the agreement significantly benefits one spouse to the detriment of the other, a court may still conclude the agreement is invalid.
Types of Agreements
Spouses may avoid splitting assets based on the following types of agreements:
- Prenuptial agreements—a legally binding contract signed before marriage outlining how the couple will divide assets in a divorce;
- Marital agreements-—an agreement made during the marriage that specifies how the spouses will divide property in a divorce; and
- Divorce negotiations—spouses can negotiate and agree to an asset division that differs from the default 50/50 rule so long as both parties genuinely consent to the arrangement.
Working with an attorney to create such an agreement can ensure that the judge does not reject it as unfair.
When a Court May Reject Agreements
Even after you work with your spouse to agree on asset division, the court must still approve it to make it enforceable. Courts tend to allow partners to reach their own agreements, but there are some factors that could make a judge determine that the contract is void. The court may conclude the agreement should not be enforced in circumstances that involve:
- Unconscionability—the agreement is deemed grossly unfair or one-sided;
- Fraud or misrepresentation—one spouse hides assets or provides false information;
- Failure to comply with legal formalities—agreements that the parties signed without following important legal formalities, like each spouse having separate legal representation; or
- Violations of public policy—agreements that attempt to waive child support or require terms that violate other laws.
Working with an experienced attorney helps to ensure that the contract is not rejected by the judge. We can guide you through the process and ensure that the agreement you worked so hard to create holds up in court.
Protect Your Assets with the Law Offices of Ali Yousefi, P.C.
If you are concerned about asset division in divorce, the Law Offices of Ali Yousefi can help you explore your options. We offer skilled, compassionate legal representation to help you protect your financial future and guide you through the complexities of California’s divorce laws. Contact us today to schedule a consultation and discuss your next steps.
Attorney Ali Yousefi is the founder of Law Offices of Ali Yousefi, P.C., and has distinguished himself as one of the leading lawyers in California. Ali values that his work allows him to make a direct, positive impact on the lives of people who have experienced stressful or traumatic events.
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