If a business increased in value because the businessperson devoted time, skill, and expertise, then the business will be considered community property. Examples include an interior decorating business, software development, and other labor-intensive businesses.
Professional licenses are not subject to division, but can warrant alimony orders to even-out the earning power of the spouses.
To the extent that you intend to prove that an asset is your separate property, or that although an asset was purchased while you were married it was purchased with separate property, be prepared to present documentation which traces the source of the funds used to acquire the asset. If you have kept your property separate, you have a good chance of it remaining separate property for purposes of a community property state divorce. If you’ve intermingled separate property with community property, the court may find that you intended to give a gift of that separate property to your spouse, or that, at best, you’re entitled to reimbursement (without interest) for your separate property’s contribution to community property.
For instance, if you owned a rental property prior to your marriage and kept the rental income separate from any marital funds, in a bank account in your sole name, and used only the rental income to improve the rental property, then the rental income will be considered to have remained separate property, even though it accumulated during your marriage.
While the details of property division can become a bit confusing, keep sight of the initial premise: if it accumulated during your marriage, it’s probably community property. If you intend to claim otherwise, be prepared to prove it.
If property accumulated during your marriage, it’s probably community property and will be divided 50/50. If you intend to claim otherwise, be prepared to prove it. If you have questions, you may choose to meet with a divorce financial planner. See https://www.institutedfa.com/ReferralSearchPage.aspx. For resource on the financial aspects of divorce, see http://www.peace-talks.com/finformation.php.
Excerpted from Your Divorce Advisor: A Lawyer and a Psychologist Guide You Through the Legal and Emotional Landscape of Divorce (Simon & Schuster/Fireside 2001). For more information: http://www.yourdivorceadvisor.com/.
For more information contact Peace Talks www.peace-talks.com
(C) 2008 Peace Talks Mediation Services, Inc.
Related posts:
- Community Property States
- Property: Equitable Division of States
- Distributing Property in an Equitable Division State
- Other Factors Influencing Property Division
Tags: Creating Fair Settlements, Your Responsibilites, Your Rights
