Community property states and property division

A person in San Jose who is getting a divorce will be subject to California community property laws. Under these laws, property is usually divided 50/50. However, when one California woman asked her husband for a divorce, he hoped to get their home and half of her 401(k). While he probably was entitled to half of the 401(k) although his wife had been the main breadwinner for the past 10 years, the house would probably be split between the two of them.

The man also was sharing his wife’s financial information with his sister. The wife believed he also was concealing assets. Since the couple had been married for 25 years, they might have accumulated a significant amount of property. Neither the information sharing nor the hiding of assets are permitted. A letter from an attorney might put a stop to the information sharing, and a person might want to note the names of financial institutions sending mail to his or her spouse. If a divorce has turned contentious, it might also be a good idea to document all communication.

Divorce among older people has been on the rise since the 1990s. Furthermore, people are waiting longer to get married, so they may be better established financially. Divorce at this age could present some financial complexities.

A high-asset divorce could mean that a couple has a lot of valuable property to divide, such as out-of-state real estate, investments, collections and even one or more businesses. Businesses can present a particular level of complexity because even though only one spouse may run the business, the other may have a claim of ownership. Selling the business might not be an easy solution even if both spouses agree to it because it may take time. Despite these complications, a couple may prefer to negotiate a divorce agreement since it may give them more control over the outcome.