Community Property vs. Separate Property: What You Need to Know in California

Published on: February 7, 2025

When going through a divorce in California, understanding the difference between community property and separate property is crucial. California is a community property state, meaning most assets and debts acquired during the marriage are shared equally between spouses. However, there are key distinctions between what is considered community property and what remains separate property.

Here, our Thousand Oaks family law attorney at Markey Law Offices explains.

What is Considered Community Property in California?

Community property includes assets and debts acquired during the marriage, regardless of who earned or purchased them. This means that both spouses own the property equally and, in a divorce, it is generally divided 50/50.

Examples of community property include:

• Income earned by either spouse during the marriage.
• Real estate, vehicles, or other property purchased during the marriage.
• Retirement accounts and pensions accrued during the marriage.
• Debts incurred by either spouse while married.

Even if only one spouse’s name is on the title of an asset, it may still be considered community property if acquired during the marriage.

What is Considered Separate Property in California?

Separate property belongs solely to one spouse and is not subject to equal division in a divorce.

This includes:

• Property owned before the marriage.
• Gifts or inheritances received by one spouse, before or during the marriage.
• Assets acquired after the couple legally separates.

However, separate property can become commingled with community property. For example, if a spouse owned a home before marriage but used joint funds to pay the mortgage, the property may be considered partially community property.

Common Disputes Over Property Division During California Divorces

Determining whether an asset is community or separate property can be complicated, especially when assets are mixed.

Some common issues include:

• Commingled assets – When separate property is combined with marital assets, it can be difficult to determine ownership.
• Business ownership – If a business was started before marriage but grew during the marriage, a portion may be considered community property.
• Retirement accounts – Contributions made during the marriage are typically split, but portions earned before marriage may remain separate.

Dividing property in a California divorce can be complex, and misclassification of assets may significantly impact your financial future. If you are facing divorce, Markey Law Offices can help you navigate the legal process and protect your rights.

Contact our Ventura County and Los Angeles County family law firm today to schedule a consultation and ensure your assets are handled fairly under California law. Our fully remote services mean you can call, text, email, or Zoom any time and receive one-on-one legal advice.