California is a Community Property State: What does that mean for you?
Divorce is often one of the most financially stressful events in your life. You may fear losing financial stability, navigating your finances alone, or being left with nothing. Financial anxiety comes from the unknown, and with the right knowledge, you can feel confident about your financial future.
As a divorce mediator, lawyer, and therapist, I have guided many couples through the divorce process. If you are divorcing in California, there are specific laws you should understand. California is a community property state, meaning that assets, debts, and income acquired during the marriage are generally split 50/50 during divorce. However, the way this applies to you depends on many factors.
WHAT IS COMMUNITY PROPERTY?
California Family Code Section 760 defines community property as any assets or debts acquired during the marriage, and community property is divided equally during a divorce. This includes:
Income earned by either spouse
Real estate, bank accounts, investments, retirement accounts
Debts such as credit card balances and loans
Businesses started during the marriage (or the increased value of a business during the marriage)
WHAT IS SEPARATE PROPERTY?
Separate property includes any property or assets owned before the marriage or acquired after the date of separation. Separate property also includes property acquired by inheritance or gift. Separate property generally remains with its original owner.
WHAT ABOUT THE FAMILY HOME?
The disposition of the family home can be one of the most difficult issues during divorce. In California, if the home was purchased during the marriage, it is usually considered community property. In mediation, you may approach issues related to the family home more creatively, but if you go to court, the judge may order you to:
Sell the home and split the proceeds, or
One spouse may buy out the other person’s share in the property.
If one spouse owned the home before the marriage or contributed the down payment with separate property, that spouse may be awarded the house as separate property or may get a reimbursement credit for their separate property contribution.
HOW DOES SPOUSAL SUPPORT (ALIMONY) WORK IN CALIFORNIA?
Spousal support is often one of the biggest financial concerns in divorce. In California, spousal support is not automatic. Spousal support is based on a variety of factors outlined in California Family Code Section 4320, including:
The length of the marriage,
The earning capacity of each party,
The parties’ assets and obligations,
The marital standard of living,
The extent to which the supported party contributed to the attainment of education, training, or career position of the supporting party,
The ability of the supporting party to pay spousal support,
The ability of the supported party to engage in gainful employment without interfering with the best interests of dependent children, and
The age and health of the parties.
HOW LONG DOES SPOUSAL SUPPORT LAST?
The duration of spousal support typically depends upon the length of the marriage. If the marriage lasted less than 10 years, spousal support is typically granted for half the length of the marriage (e.g., a 6-year marriage = about 3 years of spousal support). If the marriage lasted 10 years or more, the court may not set a definite end date to spousal support. Support can be long-term or even permanent if one spouse is financially dependent.
HOW IS SPOUSAL SUPPORT CALCULATED?
California courts use a guideline formula to determine temporary spousal support. However, permanent spousal support depends on the factors listed in Section 4320. Spousal support may also be negotiated in mediation.
HOW IS CHILD SUPPORT DETERMINED IN CALIFORNIA
Child support is a major financial consideration if you have children. California requires both parents to support their children financially, regardless of parenting time.
California uses a formula-based system to determine child support. This system considers each parent’s income, the amount of time the child spends with each parent (parenting time), healthcare, childcare, and educational costs. Unlike in litigation, child support may be negotiated in mediation.
DIVORCE MEDIATION CAN SAVE YOU MONEY AND STRESS
California divorce litigation can be extremely costly - the average contested divorce can cost $15,000 - $50,000 per spouse. PxP Mediation offers FLAT-FEE MEDIATION for a fraction of divorce litigation costs.
BENEFITS OF MEDIATION:
Lower legal fees - Mediation is much less costly than paying two attorneys to fight in court.
Faster process - A litigated divorce in California can take 1-2 years or more, while mediation often takes a few months.
Greater control over the outcome - Instead of a judge deciding your future, you and your spouse can create a custom agreement that fits your needs.
FINANCIAL PEACE IS POSSIBLE
Divorce can feel financially overwhelming but California law provides clear guidelines to protect you. Whether you are worried about spousal suppot, property division, or child support, with mediation, you have options. Mediation offers you the opportunity to create a fair, cost-effective, and sustainable financial plan.
If you’re facing divorce and want a financially smart, low-conflict solution, divorce mediation is one of the best ways to reduce financial stress and maintain control over your future.
If you would like to discuss how mediation can work for your unique situation, let’s talk.