Division of Property
In general, a married person’s separate property consists of the assets and debts acquired either prior to marriage, after the date of separation, or at anytime by means of gift or inheritance. Community property is everything else that a couple owns or owes.
Upon divorce each spouse is entitled to walk away with:
- 100% of his or her separate property and debts; and
- One-half of the divorcing couple’s community property and debts.
Equal division of the community property and debts doesn’t mean that each spouse comes away from a divorce with half of every asset and half of every debt. Some assets simply can’t be divided (e.g. a classic Corvette or a champion Airedale). All the rule means is that each side is entitled to an equal share of the net value of the community assets upon divorce. So, for example, a house worth $300,000 with a mortgage against it of $200,000 has a net value (value minus debt) of $100,000. By the same principle, a classic Corvette might be worth $100,000. If it has no loan against it, the ‘Vette has a net value of $100,000, the same as the heavily-encumbered house.
Often a spouse’s retirement benefits (pensions or deferred compensation plans) represent a substantial part of the community property. In these cases, a big part of the divorce attorney’s job involves determining how much of the benefits or account balances were earned during the marriage, because that’s the portion that is community property and must be divided. A Domestic Relations Order (DRO) is a specialized technical court order used to divide retirement benefits. Other special rules exist for determining and dividing the community property portion of professional practices and other small businesses, stock options, and other assets.
Alternatives to Divorce Litigation
A natural and very common question we hear is: “How much is this all going to cost?” We can’t always say for certain, especially just going into a divorce case, because we don’t yet know what issues will be involved or what kind of cooperation we’re going to get from the other side. But we can tell you this for sure: The most expensive divorce is the one in which each spouse hires a divorce lawyer who pledges to “get tough” with the other side, and in which the divorce becomes an affair of two lawyers butting heads like big-horn sheep.
Our office offers two alternative approaches to the traditional courtroom divorce, both of which can offer clients significant savings—both financially and emotionally--as legal posturing gives way to common sense efforts to forget the past and work together for a more positive future.
Confidential Mediation is a process in which the divorcing couple meets with an attorney specially trained as a mediator. The divorce mediator assists the couple in working together to explore alternative solutions to the issues involved in divorce (child custody, support and property division). In working together with the divorce mediator to reach their own custom-made settlement, couples are not limited to the choices available to a judge called upon to decide their case. Freed from the one-size-fits-all approach, the couple can work creatively to arrive at solutions that will serve them best after the divorce. And if, for any reason, they conclude that divorce mediation isn’t working for them, nothing that either has said during mediation can come into play in any divorce proceedings down the road. That’s why we call it “confidential” mediation. Dave Grotewohl has completed 40 hours of special training in facilitating Confidential Mediation and volunteers as a Settlement Conference Judge with the Sacramento County Superior Court, assisting couples without lawyers to negotiate settlement of their family law disputes.
Collaborative Negotiation (sometimes called “Collaborative Law”) offers the creative problem-solving flexibility of Confidential Mediation with a traditional twist — each party has his or her own attorney. The parties and their attorneys meet in a series of in-office meetings to address the issues involved in the divorce, often with the help of specially retained experts to offer assistance in financial issues or issues concerning the children. The important difference is that the attorneys are trained to assist the parties in working toward agreement rather than doing the big-horn sheep thing, and everyone agrees in writing to avoid the courtroom, where judges who don’t know the couple or their children are required to apply one-size-fits-all rules to the issues in the case. Dave Grotewohl has completed extensive special training in collaborative law and is a member of the Sacramento Collaborative Practice Group and the International Academy of Collaborative Professionals. For more information on Collaborative Negotiation, please visit www.divorceoption.com or discuss it with your attorney.
A positive and common-sense approach to divorce begins with the decision that the past does not need to determine the future. When you work together with a compassionate and settlement-oriented attorney to establish an atmosphere of mutual respect and cooperation with the other side, you will begin to discover “win-win” solutions that preserve the couple’s dignity and net worth, so that both can move on to successful lives after divorce. At Dave Grotewohl & Associates, our focus is on the future and ways to make it better for all concerned—Husbands, Wives and Children.
"Some men see things as they are and say why. I dream things that never were and say why not."
--Robert F. Kennedy
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