Community Property State
A state where most assets and debts acquired during marriage are owned equally by both spouses and split 50/50 in divorce.
Understanding Community Property State
In community property states, nearly everything earned or acquired during the marriage belongs to both spouses equally, regardless of who earned the income or whose name is on the account. Separate property (owned before marriage, inherited, or gifted to one spouse) is excluded. Upon divorce, community property is divided 50/50. This system is more predictable but less flexible than equitable distribution. The nine community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Real-World Examples
Because they lived in California (a community property state), their $800,000 in marital assets was split equally.
Related Terms
A state where marital property is divided fairly but not necessarily equally, based on multiple factors the court considers.
Property DivisionThe legal process of dividing marital assets and debts between spouses during divorce.
Separate PropertyAssets or debts that belong to one spouse individually and are generally not subject to division in divorce.
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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.