You have to divide your marital property during a divorce. What exactly does that entail?
Most people think of community property as shared bank accounts. However, it often goes far beyond that, encompassing some things that you might not even think of as a communal liability or resource. Here are some examples.
1. Retirement plans
You worked hard to establish your 401(k) balance. However, the court will probably determine that your spouse contributed to your efforts during the marriage. Luckily, there are some rules specific to divorce that could allow you to divide these assets without incurring undue tax penalty.
2. Homes
Your family home will probably be a point of contention during your divorce. However, your real estate inheritance could also be subject to division, at least in part, if you maintained it or updated it with community resources.
3. Debts
Like it or not, you probably also share financial liabilities with your spouse. Many caveats and conditions apply to this, however, so you might not be liable for every debt that your spouse accrued.
4. Collections
Valuable collectibles are assets. That is true even if you are the only one who enjoys them. Still, there are some cases in which you might not have to divide them up.
5. Businesses
You probably also have to divide businesses you hold closely as an individual. If you own a company as a partner with your spouse, it would probably also be subject to division.
Most couples take asset division in the larger context of divorce. It is a complex interaction between child custody, child support, spousal support and other obligations. Even in the simplest situations, it is rarely just a 50-50 split.