California community property laws apply to much more than just houses, cars, and joint bank accounts. While many divorcing couples focus on dividing familiar assets, some are surprised to learn that lesser-known or “uncommon” items may also fall under community property rules. Understanding how these laws apply to all types of assets is essential when protecting your financial interests during a divorce.
If you’re preparing for divorce in California, it’s important to recognize that certain nontraditional or overlooked assets may be subject to equal division. The Law Offices of Bruce A. Mandel explores some of those uncommon assets you need to be aware of if you are considering a legal separation or divorce.
How California Community Property Works
California is a community property state, meaning that most assets and debts acquired during the marriage are considered equally owned by both spouses. This typically includes income earned, property purchased, and financial obligations accumulated after the wedding date and before the separation date.
Separate property, by contrast, includes assets acquired before the marriage, after separation, or through inheritance or gift. While this framework seems straightforward, its application becomes more complex when dealing with assets that fall outside traditional categories.
Intellectual Property Rights
Many people overlook the value of intellectual property, especially when it hasn’t yet produced income. If one spouse created a patent, trademark, copyrighted work, or software during the marriage, it could be considered community property even if it hasn’t been sold or licensed.
For example, royalties from a book written during the marriage or revenue from a software program developed jointly could be split equally. Even if one spouse is the sole creator, the value of the intellectual property may still be shared if created with marital time and resources.
Stock Options and Restricted Stock Units (RSUs)
Stock options and RSUs can be complicated to divide, especially if they were granted during the marriage but will vest after the divorce. Courts may evaluate the purpose of the stock grant—whether it was compensation for past, present, or future work—to determine whether it falls under community property.
In many cases, the portion earned during the marriage is considered community property, and the rest may be separate. This requires careful legal and financial analysis to reach a fair division.
Business Goodwill
If one or both spouses own a business, the company itself may be evaluated not only for its tangible assets but also for its “goodwill.” Business goodwill refers to the reputation, client base, and expected future earnings tied to the owner’s efforts.
In California community property cases, business goodwill is often valued as a marital asset when the business was started or substantially grown during the marriage. It can be divided even if only one spouse was involved in running the business.
Cryptocurrency and Digital Assets
Bitcoin, Ethereum, and other digital currencies are increasingly included in divorce proceedings. While cryptocurrency accounts are relatively new, California courts treat them like any other investment or property asset.
If cryptocurrency was purchased during the marriage using community funds, it is subject to equal division. This includes coins stored on digital wallets, as well as other digital assets such as NFTs or valuable in-game content on online platforms.
Club Memberships and Season Tickets
Memberships that carry long-term value, such as golf club memberships, yacht club access, or season tickets to professional sports teams, may be considered community property depending on how they were acquired. If these memberships were paid for during the marriage, their value can be subject to division.
Some memberships even come with resale value or annual dues that factor into their classification as a divisible asset.
Credit Card Points and Travel Rewards
While often overlooked, accumulated rewards points, airline miles, and travel credits earned during the marriage may be considered marital assets. The key issue is whether they were acquired through joint efforts or community-funded purchases.
Courts may place a dollar value on the rewards or divide them between spouses, especially if they represent significant benefits.
Wine Collections, Art, and Other Valuable Collectibles
California community property law can also apply to non-financial but highly valuable collections. Artworks, rare books, vintage wine, designer handbags, or luxury watches can all become subjects of dispute during divorce.
If acquired during the marriage, these items typically count as community property and may need to be appraised before being divided.
Why Legal Guidance Is Crucial
Uncommon assets often present challenges in classification, valuation, and division. Unlike traditional property, they may require expert appraisals, financial analysis, or even forensic investigation to uncover hidden value.
Working with a qualified family law attorney can help ensure that all marital assets, no matter how complex or obscure, are accurately identified and fairly addressed in the settlement process. Legal professionals can also coordinate with financial experts, appraisers, and other specialists when needed. This support helps you make informed decisions and avoid costly mistakes.
Navigating California Community Property with Confidence
Dividing property in a divorce can be both emotionally and financially challenging, particularly when lesser-known or overlooked assets are involved. Understanding what qualifies as California community property allows you to minimize disputes, avoid surprises, and reach a fair outcome.
If you are preparing for divorce and are unsure whether certain assets are subject to division, contact The Law Offices of Bruce A. Mandel for a consultation. We can help you protect your interests and move forward with confidence.
