Community Property
Property acquired during marriage that is owned equally by both spouses, regardless of who earned it.
Plain English
Community property is a legal system used in certain states where most assets and income earned during a marriage belong equally to both spouses. It doesn't matter whose name is on the title or who earned the money—the law presumes it's jointly owned. When the marriage ends, community property is typically divided equally between the spouses. Separate property (owned before marriage or inherited) stays with the original owner.
Example
A wife earns $100,000 per year while her husband stays home in California, a community property state. That income is community property, meaning the husband owns half of it even though he didn't earn it. If they divorce, he's entitled to half of the assets accumulated during the marriage.
Used in a sentence
“The court divided the community property equally between the spouses as required by state law.”
How Community Property differs by state
Community Property can apply differently depending on the state. Click a state to see local specifics.
Related terms
This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.