Do you have to divide your assets in half during divorce?

Flicker, Kerin, Kruger & Bissada LLP

High-asset divorces can be tricky to handle. You may have many properties, multiple investments, loans, stocks and other assets that all need to be identified and divided in accordance with California’s laws. Since California is a community property state, there is a likelihood that your marital assets will be split down the middle. If you’re not comfortable with that 50-50 divide, then you and your spouse can discuss dividing your assets in another way.

Why would you choose to divide your assets when you could get half of all marital assets?

There are times when spouses discuss dividing their assets differently than the typical 50% split. Why? It’s not only assets that you divide. It’s also debts. Here’s a good example. If you and your spouse own four properties and two have mortgages, your spouse may want to continue paying on them to own them while you might agree to give them up to avoid taking on debt following the divorce. In exchange, you may agree to take one property that is fully paid off.

Of course, every marriage is different, and the assets you have and need to divide will vary. For some people, the 50-50 split will work wonderfully, while others might go with 40-60, 20-80 or another arrangement based on their own financial and personal circumstances.

High-asset divorces are complex even after you decide on the percentage of assets that you’re okay with receiving. You’ll need to decide exactly how to divide your assets and may need to liquidate some for cash to make things easier. Your attorney can talk to you more about dividing assets and how to make the best of this situation.

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