Dividing community property in a California divorce
California requires an equal split. Unless the parties have a written agreement or an oral stipulation in open court, the court must "divide the community estate of the parties equally." Cal. Fam. Code § 25501
- Characterize first — Unless a statute provides otherwise, "all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property." Cal. Fam. Code § 7602 Separate property includes property owned before marriage, property acquired during marriage by gift, bequest, devise, or descent, and the rents, issues, and profits of those assets. Cal. Fam. Code § 7703
- Joint-title presumption — Property acquired during marriage in joint form is presumed community. The presumption is rebutted only by a clear separate-property statement in the deed or title document, or by a written agreement. Cal. Fam. Code § 25814
- Valuation date — Assets and liabilities are valued "as near as practicable to the time of trial." On 30 days' notice and for good cause, the court may value them at a date after separation and before trial. Cal. Fam. Code § 25525
- Equal in value, not in kind — Where economic circumstances warrant, the court may award an asset to one spouse "to effect a substantially equal division of the community estate." Cal. Fam. Code § 26016
- Separate-property reimbursement — A spouse who traces separate funds into community property is reimbursed for downpayments, improvements, and principal reduction. Interest, maintenance, insurance, and taxes are not reimbursed. The reimbursement carries no interest or inflation adjustment, is capped at the property's net value, and is lost through a written waiver. Cal. Fam. Code § 26407
- Omitted assets — The court keeps jurisdiction over community assets or debts that the judgment did not adjudicate. It divides them equally unless the interests of justice require otherwise. Cal. Fam. Code § 25568
Practice notes
- Spouses owe each other fiduciary duties, including "a duty of the highest good faith and fair dealing." Those duties cover access to books and accounting for any undisclosed profit, and they shape disclosure and breach claims in division disputes. Cal. Fam. Code § 7219