Generally, spouses are free to divide their property as they see fit in what is called a “marital settlement agreement,” which is a contract between the husband and the wife that divides property and debts and resolves other issues of the divorce. If the parties cannot agree, the court must make the determination using rules of community property law.
In general, community property is divided equally and separate property is kept by the spouse who owns it. Community property includes all assets, as well as debts, which are acquired during marriage. Separate property includes all assets and debts owned before marriage, gifts received by only one spouse during marriage, or inheritances received during marriage.