Excited to ring the wedding bells in California this summer? Are you all set to participate in the house-hunting game in California? Great! Congrats! But before you get hitched, there’s one question I need to ask you and that is:
“Are you mentally ready to mix love and money together?”
If your answer is ‘yes’, then California is perhaps the best place to exchange your wedding vows. But if your answer is ‘no’, then just check out these 5 laws before exchanging a wedding kiss with your spouse in CA.
Your spouse will be truly yours along with his/her debts. This means if your spouse applies for a credit card after marriage and doesn’t pay a penny, then his/her creditor has the right to garnish your wages. But, this will only happen after obtaining a judgment order against your spouse. So, are you willing to take the responsibility of your spouse’s debt? Answer this question first.
Assets will be divided between you and your spouse equally. As per the California’s Domestic Partner Act, each spouse is entitled to claim 50% of the community property after a divorce. This means, the total value of the assets divided between the two of you should be equal. So, your spouse may get the entire family business in his name and you may inherit the family residence after divorce as long as both of you’re getting assets of equal value.
Whatever interest you’ll earn through your pension plan after marriage, is subject to division after divorce. This division is usually carried out in 2 ways in California:
You’ll get the full share of your pension plan and your spouse will get other community property assets of same value.
If you’re the primary custodial parent of the kids, then you can live in the house with children for a certain time period. You’ll have to make mortgage payments, pay homeowner insurance premiums, property tax, etc. However, if your spouse earns more than you, then he/ she may have to make those payments in California.
No matter how good a deal is, you won’t be able to sell a community property without your spouse’s permission in California. Both of you have to jointly agree to sell or lease the community property. Unless you make a will, your spouse will inherit the community property automatically.
If you don’t want to be a part of the community property scheme in California, then there’s one thing you can do. And that is, you can sign a prenuptial agreement and declare not to have a community property or you can list certain properties that will be part of community property.
Wait a minute. This article is not yet over. Before finishing off this article, I would like to show you a chart that will help you understand 3 classes of community properties more clearly:
|Your separate property||Your spouse's separate property||Both of your community property|
|Property you inherit||Properties earned after wedding||Property he/she inherits|
|Properties that both of you decide to keep separate||Properties that both of you decide will be community property||Property that both of you decide to keep separate|
|Property you had before marriage||Property he/she had before marriage|
Just remember, community property is subject to the claims of both you and your spouse’s creditors. But, separate property is subject to claims of your or your spouse's creditors. This means you’ll be responsible for your separate property in California. You’ll be liable for it and your creditor can make a claim on your separate property.