Property Division

Nevada is a community property state, which means that all property and debts acquired during the marriage are generally considered to belong equally to both spouses, regardless of whose name is on the title. At divorce, community property is usually divided 50/50 unless the parties agree otherwise or there’s a valid prenuptial or postnuptial agreement that sets different terms.

California also follows community property rules, but certain situations — such as mixed character assets, business ownership, or separate property contributions — can lead to more complex divisions. In both states, the court’s goal is to achieve an equal distribution of community property unless specific factors justify a deviation.

Separate property — assets acquired before marriage, after separation, or by gift or inheritance — typically remains with the original owner. However, disputes often arise when separate property becomes “commingled” with community property, such as when marital funds are used to improve or maintain a separately owned home.

The classification of property depends on when and how it was acquired. Separate property generally includes:

Assets owned before marriage.

Inheritances or gifts received during the marriage.

Personal injury settlements awarded to one spouse.

Property acquired after legal separation.

Community property generally includes:

Income earned during the marriage.

Assets purchased with marital income.

Debts incurred during the marriage.

Problems arise when separate and community funds are mixed — a process called commingling. For example, if you use community income to pay the mortgage on a house you owned before marriage, part of the property’s value may become community property. At Handelin Law, we work with clients to trace the source of funds, review records, and use forensic accounting if necessary to preserve your rights.

Complex assets require careful valuation and division. For businesses, the court or parties may hire a qualified business appraiser to determine the value, taking into account market conditions, income, and goodwill. One spouse may “buy out” the other’s share, or the business may be sold and proceeds divided.

Retirement accounts and pensions are often divided using a court order known as a Qualified Domestic Relations Order (QDRO), which allows the account to be split without triggering early withdrawal penalties or taxes. In Nevada and California, contributions made during the marriage are typically community property, while contributions made before marriage or after separation are separate property.

For investment accounts, division depends on the source of the funds used to acquire them. Gains on community investments remain community property, while gains on separate property investments may remain separate — unless marital funds or efforts contributed to the increase in value.

In both Nevada and California, debts incurred during the marriage are usually considered community obligations, even if only one spouse signed for the loan or credit card. This means both spouses share equal responsibility for repayment.

Debts incurred before marriage or after separation are generally separate obligations, but disputes can arise when debts are used for the benefit of the community. For example, a credit card in one spouse’s name used to pay household expenses is likely considered a community debt, while one used exclusively for personal purchases unrelated to the marriage may be treated as separate.

We help clients evaluate debt origin, negotiate responsibility, and, when necessary, use property division to offset debt allocation.

When spouses cannot reach an agreement, the court will decide based on evidence and applicable law. This process involves:

Identifying all property and debts.

Classifying each as community or separate property.

Valuing the assets through appraisals or expert testimony.

Dividing the assets and debts according to state law.

Disagreements are common in cases involving high-value assets, contested separate property claims, or complex business holdings. At Handelin Law, we work to resolve disputes through negotiation or mediation whenever possible to maintain control over the outcome. If litigation is necessary, we present thorough evidence and strong legal arguments to protect your interests.