What Assets Can Be Divided in a California Divorce?

Many people think that during a California divorce, only bank account balances are divided. In reality, California’s community property rules cover a wide range of assets. Any property or income acquired during the marriage is generally considered community property — unless one spouse can prove it is separate property.

Here’s a breakdown of common assets that may be subject to division in a California divorce:

1. Bank Accounts
   Money earned during the marriage is generally considered community property, even if the account is only under one spouse’s name.
2. Investment Accounts & Equity Compensation
   Investment accounts: Brokerage accounts or accounts holding stocks, ETFs, mutual funds, or other securities funded during the marriage may be considered community property.
   Equity compensation: RSUs, stock options, and ESPP earned during the marriage may also have a community share. The portion subject to division depends on factors such as grant date, vesting schedule, and the amount earned during the marriage.
3. Retirement Accounts
   Retirement benefits earned during the marriage — including 401(k), IRA, CalPERS, or CalSTRS pensions — are typically considered community property. Certain plans may require a QDRO (Qualified Domestic Relations Order) for division.
4. Real Estate Purchased During the Marriage 🏠
   A home purchased during the marriage is generally community property, even if only one spouse’s name is on the title.
5. Vehicles Purchased During the Marriage 🚗
   Cars or other vehicles purchased during the marriage may also be divisible, regardless of whose name is on the registration.
6. Credit Card Rewards & Airline Miles 🎁
   Points or miles earned during the marriage, such as credit card rewards or airline miles, may be considered community property.
7. Money in Digital & Online Accounts
   Funds in platforms like PayPal, Venmo, or CashApp can also be treated as community property.
8. Other Income Earned During the Marriage
   This can include wages, business income, bonuses, commissions, gambling winnings, or lottery prizes earned during the marriage.

💡 Helpful Tip: Community Contributions to Pre-Marital Property

If a home or car was purchased before the marriage but money earned during the marriage (no matter who earned it) was used to pay down the loan, one party may claim reimbursement for the payments made with community funds.

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