§3.03 Asset Distribution, Cash Out, or Sale and Division of Proceeds

You also may divide community property by assigning one or more community assets to one party and other community assets of equal value to the other party. [Marriage of Fink (1979) 25 C3d 877, 885.] This is sometimes called the "asset distribution" or "cash-out" method. [Marriage of Cream (1993) 13 CA4th 81, 88.]

You may use a secured promissory note to equalize the division of property if it is for a relatively short period at a reasonable interest rate. [Marriage of Bergman (1985) 168 CA3d 742, 761.] Valuation of promissory notes is discussed in §2.13.

You also may order community property sold and divide the proceeds. [Marriage of Cream, supra, 13 CA4th at 88.] The sale and division of proceeds may be preferable for hard-to-value property.