For many Los Angeles couples, dividing property involves considerably more than allocating bank accounts and a family residence. Marital estates may include closely held businesses, investment properties, retirement accounts, equity compensation, professional practices, trusts, and assets acquired before marriage.
California’s community property laws provide the framework for division, but determining the character and value of each asset often requires a detailed examination of financial records, acquisition dates, sources of funds, and the parties’ respective interests.
At Duncan Family Law, we focus on the financial questions that can materially affect a divorce settlement or judgment:
How this actually works
Why the date of separation can move the outcome
Under Family Code §70, the date of separation is the date of a complete, final break — one spouse’s intent to end the marriage, expressed by words or conduct, together with conduct consistent with that intent. It is not automatically the day someone moves out, and the court weighs the totality of the circumstances.
It matters because, under Family Code §771, the earnings and accumulations of each spouse after the date of separation are separate property. Move the date by a few months and a year-end bonus, a tranche of vesting equity, or a quarter of business profit can fall on one side of the line or the other. In high-income cases a disputed separation date is frequently a six-figure question — which is why messages, financial activity, and living arrangements become evidence.
●Business ownership and valuation. Identifying community and separate property interests, evaluating business income, and addressing ownership or buyout arrangements.
●Real estate and investment portfolios. Analyzing equity, acquisition history, debt, reimbursement claims, and potential tax consequences.
●Separate property tracing. Evaluating premarital assets, inheritances, gifts, commingled funds, and reimbursement claims.
●Executive compensation. Examining stock options, restricted stock units, bonuses, deferred compensation, and other employment-related benefits.
●Financial disclosures and discovery. Identifying missing records, evaluating financial representations, and obtaining the information necessary for informed decisions.
When appropriate, we work with forensic accountants, valuation professionals, and other qualified experts to evaluate complex financial issues.
The objective is not simply to divide assets. It is to understand the financial structure of the marital estate so that decisions are made with a clear view of their consequences.
How this actually works
How separate property is traced — and lost
Commingling separate and community funds does not, by itself, change the legal character of separate property. However, a spouse claiming that commingled funds remain separate generally must establish their character through sufficient evidence and an applicable tracing method. Deposit an inheritance into a joint account used for household expenses, and the burden shifts to the spouse claiming it to prove what remains separate — either by directly tracing specific funds, or by showing that community expenses had already exhausted the community funds in the account (the tracing methods recognized in See v. See (1966) and Marriage of Mix (1975)).
A related claim is reimbursement: under Family Code §2640, a spouse who traces a separate-property contribution to the acquisition of community property — a premarital down payment on a jointly titled home, for example — is generally entitled to reimbursement of that contribution, without interest or appreciation, absent a written waiver. Documentation is what preserves these claims; its absence is what loses them.
A hypothetical illustration
Consider a spouse who owns a business valued at $5 million. It is tempting to assume that figure translates into $5 million of divisible community equity. It rarely does.
The business may carry debt. Part of its value may be traceable to premarital effort or separate capital. One spouse may hold a reimbursement claim. The valuation itself depends on assumptions — the method used, the date selected, and how goodwill is treated. And a number on an appraisal is not the same as cash: a buyout has to be funded from somewhere. The right questions about characterization, debt, and liquidity often matter far more to the outcome than the headline valuation.
This example is hypothetical and provided for illustration only. It does not describe an actual client matter or predict any result.