Community Property
A property division system used in nine states where all assets and debts acquired during the marriage are owned equally (50/50) by both spouses.
Understanding Community Property
In community property states, virtually everything earned or acquired during the marriage belongs equally to both spouses regardless of who earned it or whose name is on the title. Separate property (owned before marriage, inherited, or received as a gift) remains with the original owner unless commingled. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska allows couples to opt in. This system contrasts with equitable distribution, where courts divide assets fairly but not necessarily equally.
Real-World Examples
In California, the husband's salary earned during the 15-year marriage and the wife's retirement account are both community property, split 50/50.
State-by-State Variations
Only 9 states use community property: AZ, CA, ID, LA, NV, NM, TX, WA, WI. Alaska allows opt-in. All other states use equitable distribution.
Related Terms
A property division system used by most states where marital assets and debts are divided fairly, though not necessarily equally, based on multiple factors.
ComminglingMixing separate property with marital property in a way that makes it difficult or impossible to distinguish between the two. Commingled assets may be treated as marital property.
AssetAny property or item of value owned by either or both spouses that is subject to division in a divorce. Assets include real estate, bank accounts, investments, retirement funds, businesses, and personal property.
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This definition is provided for educational purposes only and does not constitute legal advice. Divorce laws and terminology may vary by state and jurisdiction.
Always consult a licensed attorney in your area for advice specific to your situation.