Dividing property in a California divorce involves more than deciding who keeps each item. Identify the assets and debts, determine their character and value, then document the division and the steps needed to carry it out.

1. Make a complete inventory

List real estate, accounts, cash, investments, retirement benefits, businesses, vehicles, household items, insurance interests, stock compensation, intellectual property, and other things of value. List mortgages, credit cards, loans, taxes, and other obligations separately. Include property in the other person’s possession and disputed items rather than leaving them off the list.

Schedule of Assets and Debts (FL-142) provides an organized listing with instructions for supporting documents. The form states that it should not be filed with the court. Follow the financial disclosure process; exchanging information is different from obtaining an order dividing it.

2. Determine what is community or separate

Family Code section 760 states the general community-property rule for property acquired during marriage while domiciled in California, subject to statutory exceptions. Section 770 identifies separate property, including property owned before marriage and property acquired by gift or inheritance.

Dates, the source of funds, agreements, and later transactions can matter. The name on an account or title does not necessarily resolve the classification. Property can contain both community and separate interests. Mixing funds does not automatically eliminate every separate-property claim, but tracing the contributions may require detailed records.

For example, a home bought before marriage may present additional issues if community earnings later pay down its mortgage. That is different from assuming the entire home must be divided in half. A business, pension, or stock award can also require analysis beyond the date it was first acquired.

3. Support the values

Gather current statements and the records needed to explain earlier balances or contributions. Identify the valuation date, account or asset, gross value, associated debt, and any disputed interest. Avoid counting the same value twice, such as treating a business asset as a separate item when it is already included in the business valuation.

Real estate, closely held businesses, pensions, deferred compensation, insurance interests, and royalties may need specialist advice. Check transfer restrictions, taxes, loan terms, and transaction costs before comparing proposed allocations.

4. Plan the overall division

Family Code section 2550 generally requires equal division of the community estate, subject to the parties’ agreement and statutory exceptions. That does not require physically splitting every item. One person might receive an asset and the other receive different property or an equalizing payment, depending on the values and obligations.

Retirement benefits, education loans, reimbursements, and other special categories need their own analysis. Do not assume all debt incurred during marriage has the same allocation rule or that every increase in an asset’s value is divided the same way.

5. Address debts and creditor liability

An agreement or family court order assigning a joint debt to one spouse does not necessarily release the other spouse from the creditor’s claim. If payments stop, both credit records may be affected. Consider what payoff, refinancing, lender consent, or other implementation step is needed, rather than relying only on a promise to pay.

California Courts explains these issues in its guide to splitting debt. Get advice before committing to an allocation involving substantial debt or possible bankruptcy.

6. Complete the orders and transfers

A practical agreement identifies each item, who receives it, any payment amount and deadline, responsibility for debt, and the documents or actions needed to complete the transfer. Retirement plans may require a separate division order or plan-specific procedure. Signing a settlement is not always the final transfer step.

Do not transfer assets, change insurance, or dispose of property without considering existing orders, including the restrictions described in Family Code section 2040. A judge must formally address the property division even when the spouses have reached an agreement.

If you need advice on only this part of the divorce, consider limited scope representation. The free and reduced-cost assistance guide lists other starting points.

Sources checked October 24, 2026: the linked statutes and form, and California Courts’ property and debt guidance. This overview does not resolve the classification or valuation of a particular asset.