Explain what community property is

Question

What will be an ideal response?

Answer 1

Nine states—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin—recognize a form of co-ownership known as community property. This method of co-ownership applies only to married couples and is based on the notion that a husband and wife should share equally in the fruits of the marital partnership. Under these laws, each spouse owns an equal one-half share of the income of both spouses and the assets acquired during the marriage regardless of who earns the income. Property that is acquired through gift or inheritance either before or during marriage remains separate property. When a spouse dies, the surviving spouse automatically receives one-half the community property. The other half passes to the heirs of the deceased spouse as directed by the will or by state intestate statute if there is no will. During the marriage, neither spouse can sell, transfer, or gift community property without the consent of the other spouse. Upon a divorce, each spouse has a right to one-half of the community property. The location of the real property determines whether community property law applies. For example, if a married couple who lives in a noncommunity property state purchases real property located in a community property state, community property laws apply to that property.