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When a marriage comes to an end, many people think of divorce as the only option to formalize their separation legally. However, for some who qualify for it, annulment might be the preferred alternative. While both processes dissolve a marriage, annulments differ significantly from divorces, especially when it comes to property division and finances, because they act as if the marriage never existed.
Community Property Rules & Annulment
California is a community property state, meaning that assets and debts acquired during a valid marriage are typically divided equally during a divorce. However, annulments don’t follow these rules in the same way.
Since an annulled marriage is considered void, there’s no legal “community property” to divide. Instead, property and assets are divided based on ownership and contributions, including those that occurred before the marriage was approved by the state. For example, if one party purchased a car or a home during the marriage and their name is the only one on the title, that property is likely to remain theirs after the annulment. Similarly, debts incurred during the marriage generally remain the responsibility of the spouse who incurred them.
However, complications can arise if property was purchased jointly or if one partner made significant financial contributions to assets in the other spouse’s name. Resolving these disputes often requires help from a family law attorney.
Financial Challenges with Annulment
While annulments may appear less financially burdensome than divorces on the surface, they can still create unique challenges, particularly when untangling shared finances.
If you get an annulment, you might need to deal with problems related to:
- Commingled assets: If you and your spouse pooled money during the marriage (e.g., joint accounts, shared investments), dividing those funds may become complex. Each party may need to prove their individual contributions to determine who is entitled to what.
- Gifted assets or financial support: If one spouse significantly supported the other, such as paying for education or providing financial assistance, they may expect reimbursement once the annulment is in effect.
- Unrecorded agreements: Couples in annulments may find they lack the legal protections of prenuptial or postnuptial agreements, potentially fueling disputes over previously informal arrangements regarding property or money.
Approach Annulments with an Attorney’s Aid
If you’re considering an annulment, keep in mind that the process involves more than simply declaring a marriage invalid. Untangling financial obligations, dividing assets, and preparing for potential disputes requires a thorough understanding of California family law. The unique standards for property division in annulments shouldn’t be overlooked, so you should turn to an attorney for help right away.
At Gill Law Group, PC, we can help you protect your rights and interests during annulment proceedings. Whether you want to create a fair property division agreement or need help addressing financial challenges specific to annulment, our Orange County family lawyers offer compassionate and strategic legal support tailored to your situation.
Call (949) 681-9952 and request an initial case review with our attorneys.