In divorce proceedings, the date of separation holds significant importance, often surprising clients with its impact. According to Family Code section 70, the date of separation is defined as the moment when there is a clear and final break in the marital relationship. This includes one spouse expressing intent to end the marriage and behaving consistently with that intent.

This date influences various financial aspects of divorce, such as:

• Determining whether the marriage is short-term or long-term, which affects spousal support entitlements.
• Establishing when a spouse's earnings and retirement contributions become separate property.
• Valuing community property businesses.
• Deciding if an asset is classified as separate or community property.
• Managing bonuses and equity compensation.
• Calculating Epstein credits and Watts charges.

Disagreements over the date of separation can complicate matters, underscoring the need to gather financial information early in the divorce process for a fair resolution. This proactive approach expedites negotiations by ensuring all relevant financial details are available to both parties and their attorneys.

Courts consider several factors to determine the date of separation, including:

• Whether the spouses continued living together.
• How they represented their marital status to others.
• Whether they maintained a sexual relationship.
• If they started new relationships.
• How they managed finances.
• How they filed income taxes.
• Whether their conduct indicates a definitive end to the marital relationship.

Inadequate discovery on these matters can lead to incomplete asset disclosures, incorrect property valuations, and costly investigations, prolonging the divorce process unnecessarily. Therefore, it is crucial for legal practitioners to outline a comprehensive strategy early on to efficiently gather necessary financial information and avoid escalating costs associated with disjointed discovery processes.