When you end your marriage, you deserve to have an experienced attorney by your side to provide guidance and create a legal strategy that supports your interests. At Minyard Morris, we have supported clients in Santa Ana and other cities in Orange County for over four decades. Using over 350 years of combined experience, our team can help you navigate complicated divorce issues and efficiently create innovative divorce solutions.
Navigating the divorce process in California can be complex, and having the right guidance can help you approach this process with confidence. Whether you are considering your options, preparing to file a divorce petition or trying to safeguard your interests during the divorce process, our experienced Santa Ana divorce lawyers can provide you with advice, discretion and compassion.
You deserve to receive fifty percent of the property and money that you and your spouse acquired during your marriage. Reaching this solution can require a detail-oriented approach, a deep understanding of California’s property distribution laws and fierce negotiation skills. Our attorneys’ decades of experience allow us to create innovative solutions for even the most complex situations.
In cases where one spouse has significantly greater income than the other, spousal support (also called alimony) can ease the challenges they may face after their marriage ends. Whether you wonder whether alimony could help you or you worry about the impact of paying spousal support, our experienced Orange County family law attorneys can help you preserve your financial health.
When parents divorce, they must also make decisions about how they will support their child after their marriage ends. Whether you need to establish paternity to preserve your relationship with your child or wonder what your family will look like after divorce, protecting your family may depend on making informed decisions. At Minyard Morris, our Santa Ana family law attorneys can help you work toward a solution that supports your child’s well-being and protects your parental rights.
When seeking legal representation for a divorce, it’s often useful to first identify what you do not want in a lawyer.
You might want to avoid an attorney who:
Conversely, the traits you likely value in a divorce lawyer include:
Our website serves as a resource for individuals seeking legal counsel for a divorce. It is predicated on the principle that the optimal attorney-client relationship is founded on professional skill, reliability, trustworthiness, and confidentiality.
This website is meticulously structured to provide a view of our legal services, philosophies and methodologies. Our objective is to provide you with a view of our firm that allows for a critical and informed comparative analysis between our firm and its lawyers and others in Orange County.
Our objective is to allow potential clients to see the scope of services provided, the geographic area that we serve and the experience of working with one of our 20 Orange County lawyers. Additionally, it encompasses a suite of articles and resources pertaining to divorce and custody, aimed at demystifying the legal process for prospective clients.
We encourage prospective clients to utilize these educational resources extensively and invite them to arrange a consultative session when the time is right.
In summary, our website is designed to assist individuals in making an informed decision in selecting the most suitable legal representation for their unique circumstances.
In a divorce, separate property refers to assets that one spouse solely owns. These typically include anything one spouse brought into the marriage, anything they acquired individually during the marriage, or anything received specifically as a gift or inheritance. Deciding whether something qualifies as separate property usually depends on when it was acquired and whether it was kept separate from other marital finances. Separate property, essentially, is what each spouse enters the marriage with on their own, obtains on their own during the marriage, or gains after the separation.
During a divorce, the court’s job is to figure out what belongs to each spouse individually (separate property) and what belongs to both (community property). Once each spouse’s separate property is identified, it remains theirs. Community property, on the other hand, gets divided. But dividing community property doesn’t mean literally splitting every single item in half. The court tries to balance the total value of what each person receives. So one spouse might get more valuable items, like a car or certain financial accounts, while the other might receive a mix of other assets or a financial payout to make things equal.
This payout, known as an equalization payment, helps balance out the total amount of property each spouse receives. However, these payments can sometimes get tricky, especially if there are disagreements over how much should be paid, any interest that should be applied, or the length of the payment schedule. These kinds of issues are why keeping clear records and knowing exactly what counts as separate and community property can really simplify things.
In California, inheritances are usually considered separate property that belongs solely to the spouse who receives them. This rule applies whether the inheritance was received before or during the marriage. So, if one spouse inherits money or property, it remains theirs alone, and the other spouse generally has no claim to it. However, any income that comes from the inheritance, like interest or rental earnings, could be counted when figuring out child or spousal support.
Gifts are similar. Any gift received by one spouse during the marriage is considered separate property. However, for a gift to officially count as separate property, there are a few rules to follow. For example, if one spouse gives the other a car, there needs to be a written statement that clearly declares the recipient as the new owner. Without this document, the item may not legally be considered separate property, which can lead to ownership questions later on.
Example: Imagine one spouse surprises the other with a car for their birthday, complete with a bow and a “Happy Birthday” sign. Although it’s a well-meaning gesture, this alone doesn’t meet the legal requirements for a gift. To make sure the car is legally the recipient’s separate property, a written statement transferring ownership is needed. These requirements ensure that both spouses’ rights are protected and help clarify ownership if there’s ever a divorce.
California uses a community property model, where assets are divided into separate and community property. Community property generally includes any income or assets acquired by either spouse during the marriage—from the wedding day to the date of separation. This means anything earned or purchased with earnings, like a home bought with a combined income or a car paid for with shared funds, is typically community property. As a result, these assets are subject to division in a divorce.
However, this isn’t a hard-and-fast rule. It’s what’s called a rebuttable presumption, which means there are cases where an asset could be considered separate property, even if acquired during the marriage. For example, if a spouse uses an inheritance to buy a property during the marriage, that property may be considered separate, as long as there’s clear evidence showing the inheritance was used. Sometimes, if an asset’s title lists only one spouse as the owner, this can help support the case for it being separate, although the title alone may not be enough to decide.
Example: Let’s say one spouse inherits a large sum and then uses it to purchase a house. Even though the house was bought during the marriage, it might still be considered separate property if there’s enough documentation to prove the purchase came from the inheritance.
Any income or earnings that come from separate property are typically also considered separate property—provided they aren’t mixed up with community funds. For instance, if a spouse has separate property stocks that pay dividends, those dividends are separate property, as long as they’re kept in a separate account. The same goes for things like interest from a separate property savings account or rental income from a separately owned property.
But it’s crucial to keep these earnings distinct. Commingling happens when separate property funds get mixed with community property funds, which can make it harder to prove that the funds are separate. For example, if dividends from separate property stocks go into a joint account and are used for shared expenses, those dividends might lose their separate property status.
Examples.
If these earnings are used to purchase a new asset, that asset will generally also be separate, provided the original source of funds is documented.
If a spouse owns a business before marriage, it’s generally considered separate property. However, if the business increases in value during the marriage, the community may be entitled to a reimbursement for any contributions that helped the business grow. This right to reimbursement can come into play if the owner-spouse worked in the business during the marriage, causing its value to increase and benefitting both spouses financially.
To determine the community’s right to reimbursement, courts often use one of two methods: the Van Camp or Periera formula. The Van Camp method applies when the business’s growth is mainly due to external factors, like market conditions or investments, rather than the owner-spouse’s work. This method is often used for businesses that rely heavily on capital. On the other hand, the Periera method is used when the business’s growth can be attributed primarily to the owner-spouse’s direct involvement and personal skill, which is typical in service-based businesses.
In some instances, if the nature of the business changes significantly during the marriage, the court may apply one formula for part of the marriage and switch to the other for another part. This dual approach, although rare, recognizes that a business can evolve, with different factors influencing its growth at different times.
No, the community and the non-owning spouse cannot gain ownership in a business classified as separate property. However, the community may have a right to reimbursement if the business grows in value due to contributions made during the marriage. For example, if the owner-spouse works in the business without drawing a fair salary, which helps the business grow, the community may be entitled to a share of that growth.
Example: If the spouse who owns the business spends significant time working in it without taking home a reasonable paycheck, leading to an increase in the business’s value, the community may be owed part of that increase.
For businesses created or purchased during the marriage, the court often awards ownership to the spouse actively involved in managing it. The court then calculates the business’s value using established methods, like the capitalization of earnings approach or the capitalization of excess earnings method. The capitalization of earnings approach looks at the business’s income, while the capitalization of excess earnings approach values the business’s assets.
Unlike in other business settings, divorce courts don’t consider future earnings when valuing a business. This differs from other situations where growth projections are often factored in. In a divorce, the business is assessed based only on its current worth.
A business that starts as separate property can only become community property if the owner signs a written transmutation agreement that clearly states the business is now community property. This agreement must plainly show the owner’s intention to change the business’s status. Casual promises, verbal statements, or informal agreements aren’t enough to legally alter the classification of a business.
If a spouse owns a home before marriage, it’s generally considered separate property. However, if community funds are used to pay the mortgage on that property during the marriage, the community may gain a pro-rata interest in the home. This interest reflects the amount of mortgage paid with community funds and any increase in the home’s value.
Example: If joint funds from a shared bank account go toward paying down the mortgage on a separate property house, the community could be entitled to a portion of any increase in the property’s value that results from these payments.
The date of separation is when one spouse makes it clear to the other that the marriage is over. This can be done through words, actions, or a combination of both. The date of separation is critical because it affects which assets are considered community property and which are separate. For example, income earned after this date is usually considered separate property for each spouse.
Keeping a clear record of this date can help prevent future disputes over when the marriage officially ended.
Navigating a divorce in California can be complicated, especially when it comes to splitting up assets. Understanding the difference between separate property and community property is essential in this process. This guide will help explain what separate property is, how it works alongside community property, and what you need to know when dividing assets during a California divorce.
What Is Separate Property?
In California, separate property is any asset that belongs solely to one spouse. This is typically the case in three main situations:
The date and how an asset was acquired is crucial in determining whether something is separate or community property. Community property refers to everything you or your spouse earned or acquired during the marriage, and in a divorce, it’s usually split equally. However, this doesn’t mean that every asset is physically divided. Instead, the court will ensure the total value is divided equally.
Safeguarding Gifts and Inheritances
In California, gifts and inheritances are treated as separate property, even if you receive them while married. However, to keep them classified as separate, it’s important not to mix them with community property.
For instance, if you inherit money and deposit it into a joint account with your spouse, it could be characterized as community property, meaning it could be subject to division in the divorce as is, it is community property. To prevent this from happening, make sure to keep any gifts or inheritances in a separate bank or investment account to maintain their status as separate property.
Managing a Business You Owned Before Marriage
If you owned a business before your marriage, it will be considered your separate property. But if the business grows during the marriage, especially due to your efforts, your spouse may be entitled to a portion of that increase in value.
California courts use two different methods to determine how much of the business’s growth may be considered community property:
In some cases, the court may use a combination of both methods, especially if the nature of the business changed over time. That said, your spouse won’t get ownership of the business itself but is entitled to a reimbursement based on the growth attributed to the community or under-compensation.
How Is a Business Valued in a Divorce?
If your business was created or purchased during the marriage, will be characterized as community property. Most of the time, the spouse who runs the business will be awarded the business, but the court will need to determine the business’s value first. This can be a complex process that often requires financial experts to assess its worth.
Two common methods for valuing a business in Orange County are:
The court will establish the investment value of the business for the spouse who retains it, which may differ from the market value. If the court orders an equalization payment, it will be paid with after tax dollars.
What Happens With a Home You Owned Before Marriage?
If you owned a home before getting married, it’s your separate property. However, if community funds, like joint income, were used to pay the mortgage or make improvements, your spouse may have a claim on the appreciation of the home.
To determine how much of the home’s increased value should be shared, the court uses what’s called the Moore Marsden formula. This formula takes into account how much of the mortgage was paid with community funds and how much the home appreciated in value during the marriage. This ensures that the community gets a share of the residence’s appreciation based on their contributions to the property.
In order to convert the home into community property, a transmutation agreement must have been signed, a formal written document that clearly states your intention to change the ownership. RAL agreements won’t alter the legal status of the residence under California law.
Why Is the Date of Separation So Important?
In California, the date of separation plays a crucial role because it marks the point when community property stops accumulating. Any assets acquired after this date are considered separate property.
To establish the date of separation, there needs to be clear evidence—through words or actions—that one spouse has indicated the marriage is over. Simply living apart or going through a temporary separation doesn’t count unless it’s made clear that the relationship is ending permanently.
It’s wise to document the separation date in writing—such as through a formal email or legal notice—to avoid any disputes later on. This date can impact how assets are divided, how long spousal support lasts, and who is responsible for certain debts.
Financial Management After Separation
Once the date of separation is established, any income earned by either spouse becomes separate property. However, things can get tricky when one spouse uses their post-separation earnings to pay off community expenses, like shared debts or the mortgage. In such cases, that spouse might be entitled to reimbursement, unless the payments only benefited them.
To avoid confusion, it’s wise for spouses to separate their finances as soon as they decide to divorce. This includes closing joint accounts, discontinuing shared credit cards, and setting clear boundaries for financial responsibilities. Before taking these actions consult a divorce attorney.
Steps to Protect Your Finances During Separation
To ensure your financial security during a separation, here are some steps you should consider:
If you are a resident of Santa Ana looking to build a strategy that protects what matters most to you in divorce, experienced guidance is only a phone call away. Call the divorce lawyers at Minyard Morris at 949-724-1111 or reach out to our team online to schedule a confidential consultation.
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