Very simply, community property is property earned during the marriage. Separate property is property owned before the marriage or acquired after separation. Separate property is also property acquired by gift or inheritance. Family law is complicated and there may be some exceptions or qualifications concerning the determination of whether a certain property is community or separate. I would have to know many more details before I could advise you with more certainty. Retirement assets which were earned during the marriage are community property, again with certain exceptions and qualifications. The usual way retirement assets are divided is that the community property retirement assets are divided "in kind" with each party receiving half of the community share of the assets. The court may also divide the retirement assets by awarding the assets to one party and giving an offset for the value of the retirement assets to the other party. The courts used to offset assets more frequently but now offsets are rarely ordered, primarily because it is difficult to determine the present value of a retirement asset and the retirement assets have not had the taxes paid on them while other assets in the community portfolio usually have already had the taxes paid on them. Evaluating the community interest in retirement assets is based upon the value of the retirement assets attributable to what was created during the period from the date of marriage to the date of separation. This value may have changed during the 4 years since you separated. Both parties can spend community assets during the marriage before separation unless the assets are given away without consideration for for less than adequate consideration. This means that if your husband spent his 401k money on himself- say he went on an expensive vacation- you would not be compensation for his expenditures. On the other hand, if your husband spent the money on gifts for his girlfriend, you would be entitled to be compensation for your community share of this money.
Answered on Oct 13th, 2012 at 9:57 AM