Dividing property following divorce or dissolution proceedings can be complicated under family law principles. If the property has appreciated in value, this can make dividing it more contentious and complicated.
Under family law, a married couple’s earnings received during marriage are considered community property and are divided evenly at divorce. (Cal. Fam. Code § 770-772.) Property that is held in joint title by the spouses is usually considered community property and will be divided as such, meaning 50/50. (Cal. Fam. Code § 2581.) Property can also be converted to joint title if one spouse held it separately before the marriage. This presumption that the property is community property applies absent a written agreement otherwise. Couples can also execute an Aufmuth agreement which essentially states the spouse contributing separately gets a pro rata share in the increased equity of the property or asset. (Cal. Fam. Code § 852.) This ensures the spouse does not just get a flat reimbursement of the amount they paid.
How is Community and Separate Property Divided?