Property Settlements & Division

Allocation and characterization of property and debts is an important part of the dissolution of marriage proceedings. All assets and debts must be characterized as community property or separate property, and there are overlaps between the two. For instance, even a home owned before marriage by one party which stays in the name of that spouse throughout marriage, may have a portion of its value characterized as community property.

When property changes from separate property to community property during marriage, important calculations determine what portion of its present value is to be attributed to separate and what portion to community.

In addition to characterization of property, valuation is also very important. Not only the value, but also the date of valuation, can affect the relative value to the respective spouses. Examples of assets subject to the requirement of characterization and valuation include businesses, pension plans, security portfolios, etc. Blonska & Kaufman is experienced in the handling of property issues, and works with qualified expert appraisers to maximize the benefit to its clients.

High Asset Property Valuation

Typically, when property is divided between spouses in a divorce, the court values the assets and liabilities as of the date of the trial. This is an important rule for the parties to understand, because assets that fluctuate in value may be worth considerably more or less as of the trial date, compared to other more stable marital assets that will also be divided by the court or by stipulation of the parties. In certain instances, a specific asset or liability should be valued some time after the parties separate but before trial. This may be because a spouse that continues to operate a community property business after separation places the business in financial peril, and the non-offending spouse should not be punished with a decreased value in this community property asset.

Oftentimes our client is the spouse that continues to work hard at the business after separation and as a result of these tireless efforts, the business is worth significantly more, or has enjoyed huge profits after separation as a result of this work. These efforts should be awarded to the party whose skill, industry, guidance and reputation caused the business to thrive. We work with our clients to discuss all of the options related to dividing the diverse community property asset and liability portfolio acquired during the marriage, and make sure that our clients understand all of their options.