Domestic Partnership Dissolution
Terminating a registered domestic partnership can be challenging. Here are some key principles to understand before you start. As a couple in a domestic partnership dissolution, there are certain things that the partners own together and there may be certain debts that the partners owe together.
Termination of a Domestic Partnership
The termination of a registered domestic partnership ends the partnership. It returns the partners to the status of un-partnered persons. The partners will no longer have the rights, protections, benefits, obligations and responsibilities under the law as registered domestic partners. The process of termination usually divides all the community property and community obligations of the partners. Once effective, the termination may not be undone except in limited circumstances by order of a California Superior Court. Termination of a domestic partnership does not dissolve a marriage.
Date of Separation
The date of separation is the date one of the partners tells the other that they want to end the domestic partnership and there is no chance of continuing the partnership. In most cases, it is the date the partners stop living together as a couple. If there are questions about the separation date, consult an attorney.
Community Property
Community property is everything the partners have acquired together after registering their domestic partnership. It typically includes anything that either partner earned after the domestic partnership registration date and before the date of separation. It also includes anything that either partner bought with those earnings. This may not be the case if there is a prior, written property settlement agreement in place regarding rights to partnership property. In that situation, you should consult an attorney about what each person’s rights are.
Separate Property
Separate property generally is everything that partners owned prior to registering their domestic partnership. It also includes any interest or other income received from that separate property after registering the domestic partnership, and before the separation date. In most cases, anything earned or received after the date of separation, the court considers separate property. Furthermore, anything received by gift or inheritance at any time is also considered separate property.
Fair Market Value
Bank accounts and cash have a value of their actual dollar amount. To determine the value of community property, you add together the fair market value of all possessions that are community property. Fair market value is an estimate of the amount of money you would get for those items if you sell them to a stranger at a flea market, garage sale, on the Internet or through the newspaper. It does not mean the original price of the items nor how much it would cost to replace those items now. One way of estimating value is to research what similar items are selling for in newspaper ads or on online auction sites. You can determine the estimated value of separate property by the same method.
Community Obligations
Community obligations are the debts that the partners incurred after registering the domestic partnership, and before the separation date. In most cases, this includes anything still owed on any debts either of you took on after the date you registered as domestic partners, but before the date of separation. A debt is usually still a community obligation even when only one partner’s name is on the loan.
Property Settlement Agreement
A property settlement agreement is a written agreement explaining how to divide up community property upon termination of the partnership. Both partners must sign the agreement. It also details how much each partner will pay on the community obligations.
Timeline for Domestic Partnership Dissolution
It is possible for a court to set aside and cancel a termination made through the California Secretary of State. This can happen when one person did not meet all requirements at the time of the form’s filing. It may be in your best interest to consult with an attorney before filing a Notice of Termination of Domestic Partnership with the California Secretary of State. Although not required, an attorney can help ensure accurate filings.
Once you have started the process, it will take at least six months for the court to dissolve the domestic partnership and enter a judgment in a Petition for Dissolution of Domestic Partnership. In many cases it takes longer than six months. The time it takes will depend on your particular situation and on how well you and your partner cooperate in the process.
To discuss the details of your domestic partnership dissolution matter, call us for a consultation, 310.481.0300.