50-50 splits and community property: Protect your assets

Flicker, Kerin, Kruger & Bissada LLP

A high-asset divorce can be troubling at the best of times. You’ve lived a certain way for many years, and having to consider what it will be like to lose half of your marital assets is devastating. As you know, California is a state that allows for community property division, which means that you and your spouse are more likely to have to split your assets 50-50.

The good news is that there are ways to override the 50-50 split that is set in place by law. One of those is through a prenuptial agreement. Another is through a postnuptial agreement. Finally, you can override it if you and your spouse agree to different property division arrangements during your divorce.

How can you protect yourself during a divorce?

Knowing that you are, at most, likely to lose 50% of your assets is a good place to start. That helps guarantee you a number of assets, so if you’re the lesser earning spouse, it can actually be a relief to know that you’ll keep so much. On the other hand, if you are the higher earner, this could have a negative impact on your wallet.

If you have many assets, the best thing to do is to talk to your spouse and be fair. Both of you should sit down and talk about what you believe is fair and even consider mediation or arbitration to come up with a solution other than a 50-50 split.

Your attorney will help you draw up the paperwork for any agreement you decide on. That way, you can have it made official by the court.

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