Community Property

From LoveToKnow Divorce

If you are in the process of getting a divorce, you may be interested in knowing what community property means if you live in one of the states that have this law. Keep reading to find out if you live in a community property state and what this means for your divorce settlement.

Who gets what in community property?

Community Property States

If you live in one of the following states, you will need to follow community property laws when getting a divorce.

Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin

Acquisition of Property and Assets During Marriage

Community property is property and assets you and your spouse accumulated while you were married. It does not include property or assets acquired the following ways:

Through inheritance
As a gift
With funds saved before the marriage
Excluded in prenuptial agreement
Increase in value of property acquired before marriage

What It Means for Your Divorce Settlement

If you are in a community property law state, property and assets are divided between you and your spouse. According to the law, each spouse contributed equally to the marriage regardless of who had the higher salary. Each spouse's financial need or who was at fault for the divorce are not considered for the divorce settlement.

Equitable Distribution

If you do not reside in a community property state, you may use equitable distribution for the division of property and assets. Equitable distribution differs from community property laws in that each spouse's earnings during the marriage factor into the amount each spouse receives as well as who's at fault for the divorce..

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