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
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
Frequently Asked Questions
Study This in Your State
Community Property may have state-specific rules. Choose your state to study Property Ownership with localized content: