Rachel and Steven are married and own a home in Vancouver, Washington, as community property with right of survivorship. They later divorce. What happens to the CPWROS designation upon the finalization of their divorce?

Correct Answer

C) The divorce severs the community property relationship, and the property is typically converted to tenancy in common between the former spouses

Upon divorce in Washington, the community property relationship between the spouses is terminated. Community property (including CPWROS) is typically divided by the divorce decree. If the property is awarded to both former spouses without specifying a new form of title, it generally converts to tenancy in common, as they are no longer married and cannot hold community property. The right of survivorship feature of CPWROS is extinguished by the divorce, since the marital relationship that supports community property no longer exists.