Community Property

Community property is a legal concept that applies in some jurisdictions (e.g. Canada, France, and some US states) to regulate the ownership and management of property acquired by married couples during their marriage. In the context of land law, community property refers to the ownership of real property (land and buildings) by both spouses equally, regardless of which spouse acquired the property or how it was acquired.

Under community property laws, each spouse has an undivided one-half interest in the real property, which means that each spouse has an equal right to use, manage, and dispose of the property during their marriage. In the event of a divorce or the death of one spouse, the property is typically divided equally between the spouses, unless there is a prenuptial agreement or other agreement specifying a different arrangement.

Community property laws vary by jurisdiction, and not all states or countries recognise community property. In the United States, community property is recognised in nine states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In these states, the rules of community property apply to all property acquired during the marriage, unless there is a specific agreement stating otherwise.

Other states or countries such as Australia and the UK make use of equitable distribution, meaning that on the divorce or death of a spouse, net wealth is not split evenly but depends on the contributions the parties made to the property and family.