In community property states, all property acquired during the marriage using marital earnings is owned 50/50 by both spouses. Separate property—assets owned before marriage, inherited, or received as gifts—remains individually owned. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Upon death, each spouse can will their 50% share. Upon divorce, community property is divided equally.
A couple lives in California (a community property state). The husband buys a rental property during the marriage using his salary. Even though only his name is on the deed, the property is community property and the wife owns a 50% interest. However, a house the wife inherited from her parents remains her separate property.
Know the community property states (memorize: AZ, CA, ID, LA, NV, NM, TX, WA, WI). Property acquired DURING marriage with marital funds = community property. Property owned BEFORE marriage, inherited, or gifted = separate property. Each spouse can will their 50% share—there is no right of survivorship.
Related Terms
Related Concepts
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
A freehold estate represents ownership of real property with an indefinite duration.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
Frequently Asked Questions
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