Out-of-State Real Property

In California, when a couple divorces and they own real property located outside the state, that property is treated as quasi-community property. Instead of dividing the property directly, the court will adjust the division of other assets to ensure that each spouse receives their fair share without affecting the title laws of the state where the property is located.

Alice and Bob, married in California, own a vacation home in Nevada. During their divorce, the court determines that the home is quasi-community property. Instead of splitting the home, the court awards Alice a larger share of their California assets to ensure both parties receive an equitable distribution. As a result, Alice receives a total of $200,000 in assets, while Bob receives $150,000, reflecting the value of the Nevada property.

Quasi-community property means adjusting assets, not titles!

Students often confuse quasi-community property with community property, leading them to incorrectly assume that out-of-state property can be divided directly. This can result in miscalculating the equitable distribution.

Questions typically present a scenario involving a couple with out-of-state real property and ask how the court would handle the division during a divorce, focusing on the concept of quasi-community property.