(17) Community Property: Distribution of Assets/Debts

Question 1

Distribution of Assets/Debts - Upon Divorce

Answer 1

Upon divorce each spouse gets ½ of each community property asset unless (1) the court determines that the interests of justice require a different division; OR (2) certain statutory and economic exceptions apply including (a) misappropriation by one spouse; (b) separate debt incurred before/after marriage or not for the benefit of the community property; (c) educational debts – assigned to the spouse who received the education; (d) tort liabilities – assigned to the tortfeasor spouse if the liability wasn’t for the benefit of the community property; (e) the family home – may be given to the person awarded custody of the minor children; (f) closely held corporations.

Question 2

Distribution of Assets/Debts - Upon Separation

Answer 2

Earnings are held as separate property after permanent physical separation.

Question 3

Distribution of Assets/Debts - Upon Death

Answer 3

At death the property is presumed community property and/or quasi-community property.