Community Property
What does "Community Property" mean in law?
Community property is a marital property regime, followed in nine states including California, Texas, and Arizona, under which most property acquired by either spouse during the marriage is presumed to be owned equally by both spouses regardless of which spouse earned it or whose name is on the title. Upon divorce, community property is generally divided equally (50/50), in contrast to equitable distribution states where courts have discretion to divide property fairly but not necessarily equally. Property acquired before the marriage, by gift, or by inheritance is typically classified as separate property and excluded from the community estate. Commingling separate property with community property can transmute its character, creating complex tracing issues in dissolution proceedings.
Definition
Community property is a marital property regime, followed in nine states including California, Texas, and Arizona, under which most property acquired by either spouse during the marriage is presumed to be owned equally by both spouses regardless of which spouse earned it or whose name is on the title. Upon divorce, community property is generally divided equally (50/50), in contrast to equitable distribution states where courts have discretion to divide property fairly but not necessarily equally. Property acquired before the marriage, by gift, or by inheritance is typically classified as separate property and excluded from the community estate. Commingling separate property with community property can transmute its character, creating complex tracing issues in dissolution proceedings.
Example
When the couple divorced in California, the husband's salary earned during the ten-year marriage and the house purchased with those earnings were classified as community property and divided equally, even though only the husband's name appeared on the deed.