Dividing Property & Debt

During a divorce the personal property, real property, assets, debts and liabilities of the married couple will need to be divided.  Community property is generally considered property, income or assets acquired during the marriage.  Separate property is generally property, income or assets acquired prior to the marriage. There are exceptions to these general definitions such as inheritance, gifts and commingling. These definitions are crucial because typically a divorce court judge will award each spouse fifty percent of community property and fifty percent of community debt.  Separate property and separate debt will be awarded to the owning spouse.  It is important to understand that, while these standard divisions of community property and separate property do exist, there are agreements such as a prenuptial or post nuptial that can modify the division.

Items Considered Property or Debt

• Marital residence
• Rental properties
• Land
• Personal property
• Bank accounts
• Pension or other retirement accounts
• Life insurance value
• Annuities, stock portfolios, stock options and bonds
• Credit card & installment debt

Commingling Property & Gifts of Property

Often divorcing couples will have a property that does not fit the standard rules of community property or separate property.  The two most common situations that occur are the commingling of assets and gifts of inheritance.  Commingling is commonly found with real estate.  For example, a house that was purchased by one of the spouses before the marriage but income earned by both parties during the marriages was used to pay the mortgage.  This separate asset has now become, at least partially, community property.  The  other situation is a gift from a parent during the marriage is considered separate property even though is was given during the marriage.

Be sure to contact a divorce attorney to fully discuss and understand the differences between community property and separate property.  Some divorcing couples has large assets and deciphering between community or separate will require the talents of a property & debt lawyer.

Call (702) 914-0400 to talk with  Las Vegas Family Law Attorneys to discuss your case.