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Community Property in Divorce

In a pure community property system, property acquired during marriage other than by gift or inheritance from a third party is presumed to be community property and will be divided equally between the parties in divorce. Property that a spouse brings into the marriage or acquires during marriage by gift or inheritance from a third party is presumed to be separate property. Community property states generally consider a gift from one spouse to the other to be the recipient's separate property.

Property Division in Divorce: Valuation of Marital Property

In divorce cases, courts usually must divide the parties' marital property between them. Marital property usually includes both marital assets and marital debts, and generally consists of all property acquired by both or either of the spouses during the marriage, other than property acquired by inheritance or gift from a third party. State divorce laws handle marital property differently depending on whether the state follows equitable distribution, straight community property, "all property," or dual property rules.

Property Division in Divorce: Insurance Benefits

In divorce, a critical issue impacting the treatment of insurance policies is whether the policy benefits are separate property or marital property. State divorce courts have reached varied answers on the question of whether a life insurance policy is separate or marital property. In some states, "whole life" insurance contracts have been held to be marital property and generally have been valued at their cash surrender value. "Term life" policies, on the other hand, which lack a surrender value, have not been considered divisible property. In states in which inheritances or gifts are classified as separate property, insurance proceeds usually are not treated as marital property for purposes of property distribution in divorce. Other courts have ruled that the proceeds of a life insurance policy purchased with community property should be treated as community property in a divorce.

Permanent Counsel Fees

A divorce decree can facilitate an enforcement order, establish rights for both the parties, award custody and enable visitation rights, grant alimony, and distribute property between the parties. Considering the nature of divorce cases and the work involved in obtaining divorce, legal fees often differ from case to case. The fees can differ from city to city, state to state, and law firm to law firm. Preliminary meetings with counsel usually do not involve laborious effort, and usually amount to sorting the factual details. Courts take consideration of the parties' ability to pay counsel fees before awarding fees. Despite the diversity in statutes, courts apply general principles and carefully analyze the parties' financial status before awarding costs.