Families Change Guide to Separation & Divorce

4.11 - Activity: Dividing Property

ACTIVITY: Dividing Property

Jules and Anthony recently separated. They were married for 3 years. They purchased a home together during their marriage. It was recently appraised at $850,000 and the current mortgage balance is $350,000. During their marriage, Jules’s parents died and she inherited about $60,000. Anthony has $5,000 in credit card debt, which he accumulated while they were married. He also owns a car valued at $4,000, which he purchased before marriage.

Which property may be considered “community property”?

Answer: The home and the credit card debt because they were acquired during the marriage.

Which property may be considered “separate property”?

Answer: The $60,000 is Jules’s separate property because she inherited it during marriage. Anthony’s car is separate property because he purchased it before the marriage.

Who is responsible for paying the credit card debt?

Answer: In general, spouses and domestic partners are equally responsible for debt incurred during the marriage. Therefore, they each are responsible for 50% of the credit card debt.

4.11 - Activity: Dividing Property