List Community Property States

From LoveToKnow Divorce

Do you live in one of the areas on this list of community property states? If so, the law is very specific about how marital property is divided when a marriage ends.

Community property states have special rules.

The List: Community Property States

In the U.S., there are nine community property states. They are as follows:

  • Arizona
  • California
  • Idaho
  • Louisiana
  • Nevada
  • New Mexico
  • Texas
  • Washington
  • Wisconsin

How Property Is Divided in Community Property States

Is your state on the list? Community property states automatically divide all marital property equally between spouses when they divorce. If you have ever heard someone who has been divorced complaining that their spouse "got everything" in the divorce, they didn't live in one of the community property states.

In community property states, the division of property may be in the form of one spouse retaining title to certain marital assets, such as the house or a vacation home, and the other receiving a combination of some assets and a cash payment designed to make up any difference in value so that each person leaves the marriage with an equal amount in marital property.

Not All Property Is Marital Property

Not all property the couple owns is considered marital property and is divided equally in a community property state. Anything that a person owned before the marriage is excluded from marital property. Property received by one of the spouses during the marriage as a gift or as an inheritance is also excluded from marital property, so long as it is kept separate from other marital property.

This means that if one person receives cash as an inheritance and wants to keep these funds from being considered part of marital property, they need to be deposited in a separate bank account in that person's name only. Mixing the funds with marital assets by putting them into a joint checking account may mean that the Court will interpret the money as forming part of the couple's marital property if they decide to divorce. If you can list community property states, you'll have a better idea of how your marital property may be divided in the event of divorce.

For more information about how marital property is divided in community property states, please consult with an attorney.



 


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