Divorce can be challenging under any circumstances, but when community property is damaged during legal proceedings, the challenges and stress can escalate significantly.
Here in Los Angeles, we seem to face that possibility often, as we see with the current Palisades, Hurst, Eaton, and other fires in the county. We also experience earthquakes, drought, mudslides, damage from the Santa Ana winds, sinkholes, and more.
Fires often cause significant damage, leaving couples to navigate not only the emotional and legal aspects of divorce, but also the financial and logistical hurdles of assessing and dividing property affected by a natural disaster. It may feel like “getting kicked when you’re already down,” but if you have a plan, you can rebound relatively quickly.
Property Lost or Damaged by Fire
For couples going through a divorce, the state of their property—whether partially damaged or entirely destroyed—adds a layer of complexity to the division of assets. In this situation the parties should do the following:
- Document the Damage: Before any division of property can occur, it’s crucial to document the extent of fire damage. Photos, videos, and professional assessments can provide clear evidence of the property’s current state.
- Appraise the Value: A professional appraiser experienced in post-disaster evaluations can determine the current value of the property, accounting for damage. This will help ensure a fair division of assets.
- Insurance Claims: Reviewing the homeowner’s insurance policy is critical. Divorcing couples should collaborate or work through their legal representatives to ensure claims are filed promptly and accurately.
- Free webinars are available to help with insurance claims, for example this one hosted by the Beverly Hills Bar Association: Damage Claims Following Natural Disasters.
Practical Steps for Divorcing Couples
California is a community property state. All assets and debts acquired during the marriage are typically divided equally. This includes:
- The primary residence, even if it has been damaged by fire.
- Insurance payouts related to fire damage.
- Rebuild or repair costs.
In cases of fire-damaged property, disputes often arise over how to allocate repair costs, divide insurance payouts, or determine whether to sell or rebuild the home.
A divorcing couple should alleviate some of these disputes by:
- Hiring Experts: Retain legal, financial, and property experts who specialize in divorce and disaster-related issues.
- Evaluating Long-Term Costs: Factor in the costs of repairs, rebuilds, or relocation when negotiating the division of property.
- Separating Insurance Policies: Ensure that both parties are clear about who will handle insurance claims and payouts. It is important to work together to have a united front with the insurance company.
- Considering Divorce Mediation: Mediators can help couples reach agreements on complex property issues, saving the parties the costs of prolonged court battles.
Children and Pets in Times of Crisis
No matter what happens to a physical home – whether fire damaged or completely destroyed – your children and pets should always have the safest living conditions possible. They, and you, should also consider emotional health. Counseling may be beneficial for parents and children alike, particularly when a family splits up, and the safe place called home is destroyed by natural disaster.
Know that these considerations will be the first priority for California Family Law Courts as well.
By staying organized, seeking professional advice, and maintaining open communication, couples can work toward resolutions that consider both immediate needs and long-term impacts.
