Community Property & Separate Debt

In a divorce case the couple will need to separate property and debt. This is referred to as property and debt division. The couple can agree, or stipulate, to the division or if the couple divorcing cannot agree then the family law judge will make a ruling. The judge’s ruling is typically based on the legal concepts of community property and separate property. Some states have special laws governing exactly how property will be divided, but the general guidelines are mostly the same across the board.

Community Property

Though the specific details of what constitutes community property may differ and there may be exceptions, it can generally be described as any assets that were acquired by the parties during the course of the marriage.

• Home purchased during the course of marriage
• All or portions of retirement accounts
• Joint bank accounts
• Personal property aquired during marriage
• Income accrued during the course of marriage
• Life insurance value
• Vehicles
• Annuities, stock portfolios, stock options and bonds
• Credit card & installment debt

Separate Property

Typically separate property refers to those things that were earned or purchased prior to the marriage or after a formal divorce and have not been commingled with the community. This property does not have joint ownership and does not need to be divided in a divorce The justification for this is that certain property is the full domain of a single owner. There are special situation where property acquired after the marriage are still considered separate property. Inheritance and gifts, for instance, is generally considered separate property. Be sure to consult with a divorce attorney for a true understanding of separate property exemptions.

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 will be given to owning spouse. It is important to understand that, while these standard divisions of community property and separate property do exist, there are agreements such a prenuptial or postnuptial that can modify the division.

Call (702) 914-0400 to talk with a Las Vegas Family Law Attorneys or if you have more questions about division of property & debt.