It means that the property you and your spouse acquire during your marriage is owned equally, 50-50. Community property includes wages earned by either spouse during the marriage. It’s the home and furniture purchased during the marriage with the money earned during this period. Interest income earned by investments are included as well. All of this community property is divided equally in a Divorce.
Community property is not determined by the name on the property. Homes, vehicles, 401(k) accounts, or other financial accounts are all community property even if they have your spouse’s name on them and they were acquired during your marriage.
It’s property that’s brought into the marriage. The student loans that you bring into your marriage? Those are all yours, unless, of course, your spouse wants to help pay those off. On the other hand, if your spouse inherits a Tahoe cottage from a favorite relative with his name on the mortgage, it belongs to him. Gifts and inheritances are considered separate property.
Community property law sets the standard that the income and assets of a married couple are jointly owned. While one party inevitably earns more or contributes more net income to the household, assets are owned equally. Nine states have adopted community property laws, and the community property estate is often dissolved only in the course of death, divorce, departure from a community property state or legal separation.
A Cautionary Tale: Unmarried Spouse Ends Up with Nothing
Please fill out the form below to opt-in to receive our eNewsletter. You can unsubscribe any time.
Contact us today; most of our clients tell us that it was much easier than they thought it would be.