Community Property: Includes all remuneration earned while being married and everything that was purchased with those earnings. All debts that were incurred are community property debts unless the creditor specifically looked to one spouse’s separate property for payment.

Separate Property Of One Spouse

Property Settlement During Divorce
This includes:

  • Inheritances or gifts were given particularly to one spouse.
  • Personal injury compensation awarded to one spouse.
  • Proceeds of a pension fund vested to one spouse before marriage.

Property that was purchased with separate funds remains the property of that spouse’s separate property. A business that was owned by one spouse before getting married remains the property of that spouse. However, a portion of it may be considered community property in the case where both spouses worked at it, and it has increased in value as a result. Depending on the circumstances, separate property that was combined with community property during the marriage may be viewed as community property entirely or in part.

  • Property that was bought with both separate and community funds will be considered as a part community and separate part property as long as the spouse can show that separate funds were used. Generally, community property blended with separate property becomes community property.

When you are getting a divorce, Central Coast lawyers can assist you with your property settlement case to ensure you are getting what you are entitled to.

Which Spouse Gets To Stay In The House?

Property Settlement During Divorce
In the case where the couple has children, the parent who is spending the most time with the kids or are their primal caregiver generally gets to stay with them in the marital home. When no kids are involved, and the property is the separate property of one spouse, then that person is legally entitled to remain in the house.

In the case where both spouses own the home and not kids are involved, both have the right to stay in the house. When both spouses refuse to leave and can’t reach a decision, the court may decide for you during the divorce proceedings (or earlier) if a temporary order is requested on the issue. In the case of domestic violence, the judge can grant a restraining order to have your spouse removed.


It is common practice for the divorcees to decide on how they would like to divide their debt and property by themselves, rather than leaving it in the hands of a judge.

However, if the couple cannot reach an agreement, their property dispute can be submitted to the court, and the debts are divided according to state law rules.

When property is divided between the spouses, it doesn’t mean a physical division. The court usually awards a percentage of the total value of the property (including personal property, debts and assets).

It is a legal requirement in divorce property settlements that the couple openly divulge all assets. Unfortunately, it happens that one spouse will attempt to hide assets from the settlement division which is illegal and seen as contempt of court. The guilty party can face serious consequences.