The idea of getting a divorce can bring up many questions for both parties involved. Some of the most common include how to divide your assets and what’s done with the debts that you both owe. The laws in the state of California will dictate how marital property and debt are divided up between both parties.
Official final order
When you first start the divorce proceedings, you’ll need to determine who gets what. All property that is considered marital property is to be split equitably between both parties. While you and your former spouse may have come up with an agreement that works for the two of you, it must be finalized by a judge. Only after a judge signs the final order does each spouse take responsibility for the assets and the debts that were given to them. Before that final order is signed by the judge, both marital debts and assets are still considered belonging to both of you.
List your assets and debts
A great way to start out dividing up your assets and debts is to list them all out. Have a list of all your marital assets like your home, cars and savings account. Also, have a list of all your debts, including things like your mortgage, car payments, credit card payments and personal loans. You want to list all the values of these assets and debts on a monetary scale.
Consider offsetting high-value assets with debt
When splitting up assets, it’s important to consider their value. If one spouse is getting a high-value asset such as a home, then they should take on more of the marital debt. This will help to offset the overall value that they’re obtaining for the divorce.
Undergoing a divorce can be a lengthy and overwhelming process for anyone. Dividing up all your assets and debts is a large part of the divorce process. Do yourself a favor and try to come up with an agreeable property division from the very start to save yourself both time and money.