This document discusses how to divide property during a divorce. It explains that all property acquired during the marriage is considered community property and must be divided, with some exceptions like separate gifts, inheritances, or premarital debts. The general rule is that property is divided 50-50, though equitable division aims to split it substantially equally. Certain assets like businesses, retirement accounts, and debts require special consideration to determine what portions are considered separate or community property. The document provides examples and tips for navigating complex divisions of various asset types.

1. SPLITTING
UP YOUR
PROPERTY
NAVIGATING YOUR
DIVORCE WORKSHOP #10
M Y M O D E R N L A W . C O M

2. WHERE DO WE START?
EVERYTHING. Even the kitchen spoons.
I D E N T I F Y A L L P R O P E R T Y
M Y M O D E R N L A W . C O M
D I V I D I N G P R O P E R T Y S L I D E 0 1
All property acquired during your marriage is community property.
S E P A R A T E O R C O M M U N I T Y ?

3. Separate Property
T H E G E N E R A L
R U L E : T H E S T A T E
W H E R E T H E
P R O P E R T Y
E X I S T S I S T H E
L A W W H I C H
G O V E R N S
W H E T H E R I T ' S
S E P A R A T E O R
C O M M U N I T Y
M Y M O D E R N L A W . C O M
D I V I D I N G P R O P E R T Y S L I D E 0 2

4. ARE
SEPARATE
G I F T S , I N H E R I T A N C E S O R
B E Q U E S T S
This can be tricky when assets
that were once separate are
retitled or comingled during
marriage
M Y M O D E R N L A W . C O M

5. EXCEPTIONS
INCLUDE:
A V I R T U A L S P I D E R W E B
Prenuptial agreements, or debts
incurred before marriage
M Y M O D E R N L A W . C O M

6. SEPARATE PROPERTY
ASSUMPTIONS
T H E G E N E R A L
R U L E : T H E S T A T E
W H E R E T H E
P R O P E R T Y
E X I S T S I S T H E
L A W W H I C H
G O V E R N S
W H E T H E R I T ' S
S E P A R A T E O R
C O M M U N I T Y
M Y M O D E R N L A W . C O M
D I V I D I N G P R O P E R T Y S L I D E 0 6

7. Can be used to pay a debt from
before marriage only if it was
incurred before.
W H A T A B O U T D E B T S
M Y M O D E R N L A W . C O M
Can't reach one party's separate
property to pay the other's debt.
C R E D I T O R S
Know all of your assets and debts
before filing a petition for
separation or divorce.
T I P !

8. Division
Upon
Divorce
Property is subject to equitable
division, which assumes a 50-50
split. Property division is NON
MODIFIABLE
G E N E R A L L Y : 5 0 - 5 0
D I V I D I N G P R O P E R T Y S L I D E 0 6

9. Quasi
Community
Property
M Y M O D E R N L A W . C O M
D I V I D I N G P R O P E R T Y S L I D E 0 7
A R I Z O N A S A Y S :
Property acquired by either party
outside the state is considered
community property if it would
have been community property if
acquired in this state.

10. Property division equality
It must be
substantially equal in
the absence of
compelling factors.
If the court fails to
divide your
property equally,
you have been
deprived of your
vested rights.
M Y M O D E R N L A W . C O M
D I V I D I N G P R O P E R T Y S L I D E 0 8

11. What property is
separate?
S O C I A L S E C U R I T Y R E T I R E M E N T
P R O F E S S I O N A L D E G R E E S
P E R S O N A L I N J U R Y D A M A G E S
S O M E I R R E V O C A B L E T R U S T C O N T R I B U T I O N S

12. CO-
MINGLED
PROPERTY
M Y M O D E R N L A W . C O M
D I V I D I N G P R O P E R T Y S L I D E 1 0
C O U R T S A Y S :
Has the asset become
community property by the
intent of the owning spouse?

13. EXAMPLE:
A H O M E O W N E D B Y T H E H U S B A N D U S E D A S T H E
M A R I T A L H O M E W A S T H E P R O P E R T Y O F T H E
H U S B A N D S E V E N T H O U G H B O T H P A I D T H E
M O R T G A G E
COMMUNITYPROPERTY

14. Building a
Business
If Wife helped build and grow
Husband's business, the court is
more likely to award Wife an
interest in the business
W H A T A R E T H E F A C T S ?
D I V I D I N G P R O P E R T Y

15. The Formula
Courts Use
If A = appreciation of the property during
marriage, where B = the appraised value
of the property as of the date of the
marriage, and C= the community's
contributions to the principal, the value
of the community's "lien" = C+ [C/BxA]
M Y M O D E R N L A W . C O M
D I V I D I N G P R O P E R T Y S L I D E 1 5

16. But the increase in value may or
may not be community assets.
L A N D C A N B E
C O M M U N I T Y O R
S E P A R A T E
P R O P E R T Y
M Y M O D E R N L A W . C O M

17. Business will be broken down into
its component parts or assets, and
each will be evaluated to see if it's
community property.
P R O F E S S I O N A L
B U S I N E S S E S
M Y M O D E R N L A W . C O M

18. What is
included?
Physical assets, bank accounts,
accounts receivable, community
goodwill, the building the license
and professional degree
D I V I D I N G P R O P E R T Y

19. Degrees and
licenses
These are always considered
separate property.
Accounts receivable may be valued
without regard to taxes and
overhead expenses...
D I V I D I N G P R O P E R T Y S L I D E 1 8

20. EXAMPLE:
DR. BILL - DENTIST
T H A N K S F O R J O I N I N G U S !
Wife Katherine never worked in the
practice but supported him over 20
years. Dr. Bill received a loan from
his father to start the
business, which now has 1500
patients, and it makes $1 million.
Katherine wants to know what her
interest in the business is.

21. A business evaluation by
an appraiser will be
needed
The degree: separate
Equipment: community
T H E D E T A I L S . . .
M Y M O D E R N L A W . C O M

22. WHAT IF?
Dr. Bill got an inheritance
that funded his business.
The inheritance is
SEPARATE property.

23. PROFITS COME FROM THE
BUSINESS, NOT THE "TOIL"
OF THE SPOUSES
S o D r . B i l l a r g u e s
t h a t h i s w a g e s , h i s
s a l a r y , i s
c o m m u n i t y p r o p e r t y ,
b u t p r o f i t s e a r n e d
b y t h e b u s i n e s s a r e
h i s s e p a r a t e
p r o p e r t y .

24. B a s e d o n a r e g u l a r 9 - 5 w o r k s h i f t
THE BURDEN
IS ON THE
SPOUSE TO
PROVE
OTHERWISE...

25. RETIREMENT
AND
STOCKS
EARNED BEFORE OR AFTER
MARRIAGE???
T H I S G E T S T R I C K Y

26. AFTER A RETIREMENT
BENEFIT IS AWARDED IN A
DIVORCE IT BECOMES
VESTED PROPERTY
A q u a l i f i e d
d o m e s t i c r e l a t i o n s
o r d e r , o r Q R D O i s
r e q u i r e d t o d i v i d e
t h e q u a l i f i e d
r e t i r e m e n t a c c o u n t s

27. SOCIAL
SECURITY
Congress says this is
separate property

28. DISABILITY
BENEFITS
These are subject to
division because
they replace income

29. LIFE
INSURANCE
POLICIES
Value is determined
based on the cash
surrender value

30. THANK
YOU!
MYMODERNLAW.COM
T H A N K S F O R J O I N I N G U S !