community property - United States

A legal theory of property ownership in which all of a couple's earnings and property acquired during marriage, subject to certain exceptions (eg gifts and inheritance), are owned jointly by the ‘community’ and divided equally in the event of a divorce; as opposed to separate property, in which each spouse owns his or her own property individually. Many US states have adopted community property laws, which are seen as more equitable to women, though the separate system is still used in England and Wales.

Community property is a marital property regime that originated in civil law jurisdictions, and is now also found in some common law jurisdictions.

In a community property jurisdiction, most property acquired during the marriage (except for gifts or inheritances) is owned jointly by both spouses and is divided upon divorce, annulment or death. In non-community property states property may be divided by equitable distribution. Generally speaking, the property that each partner brings into the marriage or receives by gift, bequest or devise during marriage is called separate property.

United States

In the United States there are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Married couples in Alaska can also adopt community property rules, at least for the purposes of that state's law, by signing an agreement to that effect. Most states that operate under community property regimes were first colonized by Spain or France, which have always been civil law jurisdictions. In general, community property may result in lower federal capital gain taxes after the death of one spouse when the surviving spouse then sells the property. Some states have created a newer form of community property, called "community property with right of survivorship." The rules and effect of holding title as community property (or an another form of concurrent ownership) vary from state to state. Consumers who are considering how to hold property should either research these matters carefully or consult someone familiar with these issues, such as an attorney who practices in the state where the property is located.