Rental Properties and Asset Division During Divorce in California

Pleasanton CA divorce attorneyThe complexity of a divorce in CA can vary wildly based on a variety of factors and circumstances. In our experience, some of the factors that tend to add layers of complexity to any divorce include whether there are any disagreements/disputes involving child custody, as well as any financial matters or challenges that both parties can expect to deal with down the line. 

As you prepare for your divorce in CA, it’s common for people to wonder what exactly they get to keep, especially when it comes to major resources and assets such as businesses, retirement/savings accounts, investments, and rental properties. 

Given the rise of rental properties over the years, we thought it would be a good time to revisit asset division and consider how the CA family law courts assess and divide real estate properties between a divorcing couple.

California as a Community Property State

The principles that dictate how family law courts handle rental properties all come down to one fact: California is a community property state. This means that all property, resources, and even debt that is acquired during the length of the marriage becomes community property. In comparison, anything owned by either party before they got married is known as separate property. 

During divorce proceedings, family law courts aim to split community property and debt equitably between both parties. This includes all real estate properties such as rental properties, family and secondary homes, vacation getaways and timeshares, and more. Note that this also includes debt such as mortgage debt and credit card debt.  

Best Ways to Divide Rental Property During Your CA Divorce

When a judge is facilitating with the asset division phase of the proceedings, they look at when the property was acquired to assess whether the property should be split or whether it is considered separate property and thus rightfully owned by the original owner. 

Rental property acquired during the marriage will be subject to a 50/50 split with a few exceptions such as pre-established clauses in a prenuptial. When dividing rental property, the family law courts look at the big picture and thus there are a variety of approaches one can take to divide real estate assets. 

For example, you may opt to sell the property and simply divide the profits evenly. Another possibility is letting the ex keep the property in order to offset getting full ownership of other financial assets. Those going through an amicable divorce might even consider becoming business partners and continuing to operate with no disruption to the rental properties. 

Consult with our Family Law Attorneys Today

As you can see, there’s several factors to examine when thinking about the implications of asset division on your specific divorce. When it comes to these and other complex legal matters involving family law in CA, there is no alternative to professional legal advice. 

Learn about how the Law Offices of James P. White can help guide you through your family law matters. Call us at 925-271-0999 to connect with our legal team today.