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Community Property

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Definition

In community property states, property acquired during marriage automatically belongs equally to both spouses, regardless of whose name is on the title. This affects estate planning and divorce.

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About this term

Community property is a legal system used in nine states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin) and some territories. Property acquired during marriage is presumed to be community property owned equally by both spouses, even if only one spouse's name is on the title. Upon death, the surviving spouse retains their half of community property. This system differs significantly from common law property states and affects estate planning, divorce, and creditor rights.

Pro Tip

If moving to a community property state, understand how it affects property rights.

Example

In California, the house purchased during the marriage was community property despite being titled in the husband's name.

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