Sacramento, CA asked in Divorce and Family Law for California

Q: Divorce in California, Community Property Law, and a license that is required to do a job

We are going to divorce in California, and I am considering starting a new job now that requires getting a contracting and selling license from CSLB. Is holding a license considered a type of property kind of owning a business that may arise an issue under California Community Property law? Should I wait to divorce then get the license, I really need to switch to the new job I can't wait, how I can resolve this?

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3 Lawyer Answers

A: A license to do business is not property, is not an asset that can be divided and presumably carries no monetary value.

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A: The license by itself has no value. You can't sell it to someone else for a certain amount of money, so there's nothing to split with the other party. Now if you were to start your own business, and that business became valuable, or acquired other assets that could be sold, that would create value subject to being divided.

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James L. Arrasmith
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Answered

A: In California, community property laws generally consider any income or assets acquired during the marriage to be jointly owned by both spouses. However, a professional license, such as a contracting and selling license from the California State Licensing Board (CSLB), is not considered a tangible piece of property like a house or a car. Instead, it is an individual's ability to earn income.

While the license itself may not be considered community property, the income generated from the employment or business utilizing that license could be subject to division under community property laws if earned during the marriage. Therefore, the earnings that you might acquire through employment utilizing this new license could potentially be considered part of the marital estate if earned before the divorce is finalized.

If you need to switch to the new job and cannot wait for the divorce to be finalized, you might want to consider discussing this with your divorce attorney. They can offer advice tailored to your specific situation and might help you negotiate an agreement with your spouse regarding any income earned from this new employment. This could involve specifying which portions of your income will be considered separate property due to the change in employment circumstances. Remember, communication and legal advice are key when navigating through such transitions during a divorce.

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