Fast Facts: Community Property

What is Community Property

Community Property is a legal term that says that all property (except for gifts and inheritances) that is acquire during the marriage belongs equally to both parties. This means that if the husband earns all the money in the marriage and he uses it to buy a house during the marriage, the wife gets half the value of that house when they divorce.

What States Recognize Community Property.

Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin all have community property laws as does Puerto Rico.

If I Own a Business Before I Get Married, Is That Community Property? This is a tricky one. Technically, anything owned prior to the marriage is excluded, but if there is proof the business thrived and thus became more valuable in the years during the marriage a judge may require a split. These same issues often come up regard stocks, pensions and annuities.

Are Debts Community Property?

They are in the sense that after a divorce, one spouse is equally liable for outstanding credit card debts, mortgages, and loans as is the other. This is why it's important to settle as many debts as possible and close all joint accounts as part of your separation.

Note: Even among community property states, the laws do differ. It's best to consult an attorney to make sure you get what you're entitled to. Use the Divorce.com search engine to find a divorce attorney in your area.