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Experienced Silicon Valley Attorneys For Property Division In Divorce

One of the most complex aspects of divorce is dividing the assets and debts that were accrued during the marriage. This becomes even more challenging in high-asset cases or when businesses and stocks are involved.

At Silicon Valley Law Offices (SVLO), we have substantial experience helping high-asset individuals and business owners through divorce. We serve Silicon Valley and the Bay Area.

Understanding California As A Community Property State

California is a community property state. This means that all assets and debts acquired during the marriage belong to both spouses equally. Assets include:

Real estate: Primary residences, vacation homes, rental properties and commercial real estate
Investments: Stocks, bonds, mutual funds, ETFs, restricted stock units (RSUs), and other investment accounts
Retirement accounts: 401(k)s, IRAs, pensions and other retirement savings
Business interests: Shares in startups, ownership stakes in private companies and interests in venture capital funds
Intellectual property: Patents, trademarks and copyrights, along with royalties from any intellectual property
Vehicles: Luxury cars, boats, private jets and other high-value vehicles
Bank accounts: Checking accounts, savings accounts and certificates of deposit
Collectibles and art: Fine art, antiques, rare books and other valuable collectibles
Cryptocurrency: Bitcoin, Ethereum and other digital assets
Life insurance policies: Cash value of whole life insurance policies
Personal property: Jewelry, designer clothing, high-end electronics and other valuable personal items

Debts accrued during the marriage can include:

Credit card debt
Medical bills
Student loans
Gambling debt
Mortgages
Car payments

These assets and debts must be divided between you and your spouse when the marriage ends.

Characterization Of Property

Although community property and debts are divided equally, not all of your property or debts are part of the community property. Some assets are yours alone and can be characterized as separate, not community, property. Once the characterization of assets and debts (as separate or community property) is determined:

Community property assets will be divided equally between each spouse.
Separate property will be awarded solely to the spouse who has successfully proven their separate property claim.

This is a crucial part of the asset division process, and SVLO stands ready to ensure that any separate property is counted properly.

The Methods Of Division

Discussions on dividing property can occur during mediation or a settlement officer conference. Often, lawyers negotiate the final property agreement on behalf of their clients. If an agreement cannot be reached, the court will decide how to divide the property. The court will first consider any pre or post-marital agreement that may have been signed. These agreements protect the assets of the parties in a marriage if the marriage ends.

If no such agreement exists, and the parties cannot settle the matter through mediation or negotiation, the court will:

Hear arguments
Review evidence concerning the division of property
Make orders to achieve an equitable division

Our attorneys are prepared for any eventuality. We can negotiate with your spouse’s attorney, help you reach a fair agreement in mediation or take your case to court.

Real Property Issues

Real property, like homes, can pose difficult issues during division and is typically reserved for trial. The issue becomes less complicated if joint funds were used to purchase the home. This gives the community equal interest in the real property and any encumbrances on the property. When this occurs, the court may:

Find that the home should be sold
Distribute the sale proceeds equally between the parties

An issue that often arises is when one party wants to “buy out” the other. This involves:

The “buyer” giving the “seller” their half of the fair market value (FMV) of the home
Agreement and cooperation between the parties to agree upon the FMV and effectuate the sale

Your real estate assets likely comprise a substantial amount of your marital estate. We can help you assess your options, consider the market and find a way to fairly divide real property.

Complex Property Situations

Complex issues arise if property was purchased by one spouse before the marriage. Although one spouse bought the property, it may not be entirely separate property at this point. This is because the non-purchasing spouse probably contributed to its payment or improvement during the marriage. Also, the property may have increased in value during the period of the marriage.

The non-purchasing spouse’s responsibility for the home and reimbursement claims will need to be determined. This includes:

How much the spouse contributed to mortgage payments after marriage
Reimbursement claims for a spouse’s use of the property after separation
Amount the spouse contributed during the marriage

SVLO has substantial experience determining what percentage of an existing home should be considered part of the community estate.

High Net Worth Assets

High net worth assets may require qualified professionals to:

Trace finances
Determine the appropriate division and amounts for reimbursement
Provide formal appraisals of property or personal assets (e.g., art, jewelry, vehicles)

After determining the character of assets and the appropriate division and amounts for reimbursement, attorneys can often negotiate a property settlement.

Why Establishing The Date Of Separation Matters

Establishing the date of separation is crucial as it affects the division of debts. Under California law, you need to present evidence of two factors to prove that a relationship ended on a specific date:

The stated legal intent to end the marriage (e.g., declaring separation or divorce)
An act in furtherance of your intent to end the marriage (e.g., physical separation, moving to a different room)

Physical separation is generally easy to prove. The court may accept sleeping in different rooms in the same residence if other acts demonstrate the intent to separate. If your intent to separate is in writing, the date it was signed by both parties typically counts as the official date of separation. If there is no writing, a declaration of intent and an act in furtherance can prove the date of separation. Any debt incurred after the established date of separation will be counted as separate property or the sole responsibility of the party who acquired the debt. The date of separation can be a complex issue, so having experienced attorneys to assist is highly recommended.

Schedule Your Consultation With Us Today

Call us today at 650-546-7595 or email us to schedule an initial consultation. Let SVLO help you understand and manage the complexities of spousal support (alimony) and asset division in your divorce.