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Community Property • Equal Division of Assets
CPROP#007
Legal Definition
Generally, each community property asset and liability must be divided equally.
Plain English Explanation
If you remember, we assume that all property that the couple bought or earned during the marriage is community property. Because you can’t take away either person’s claim to the property, we split all community property 50/50 between the partners, even if that property is the wages earned by one person in the marriage. This applies to the good stuff both people want––money and property––and the stuff neither party wants: debts!
Hypothetical
Hypo 1: While Sam and Jill were still together, Jill bought an old boat and spent her weekends fixing it up. After a few months of tinkering with the engine, adding a new paint job, and buying new navigation equipment, she begins to rent out the boat to visiting tourists. How do we look at the boat and the money earned from the fixed-up boat? Result: Our first instinct should be that the boat and the money earned from renting it out is community property, which means both people get half of that money. After all, Jill may have fixed up the boat, but Sam was the one who worked so she had money for equipment.
Hypo 2: Amy and Bob are going through an ugly divorce and, as Bob’s lawyer, you’re helping figure out what to do with the credit card debt that Bob racked up while they were together. Result: Even though Bob got to spend all that money, both the credit card debt and the stuff he bought is community property, meaning we can divide both 50/50.
Hypo 2: Amy and Bob are going through an ugly divorce and, as Bob’s lawyer, you’re helping figure out what to do with the credit card debt that Bob racked up while they were together. Result: Even though Bob got to spend all that money, both the credit card debt and the stuff he bought is community property, meaning we can divide both 50/50.
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