Community Property States
What You Need to Know for Your Relationship
Last Updated: March 13, 2025
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Key Takeaways:
- Community property is made of assets, debts, and property acquired during marriage.
- Living in one of the nine community property states can affect property division during separation or divorce and the distribution of property under succession laws.
- Having the proper knowledge, legal assistance, and legal documents can help you prepare for any outcome in your relationship.
Table of Contents
- What does community property mean?
- What are the community property states?
- Community property versus common law property states
- What is considered community property?
- Do community property laws affect domestic partnerships?
- How can couples prepare for marriage in community property states?
- Divorce and separation in community property states
- Community property states and taxes
- Estate planning in community property states
- Be prepared for community property laws
Whether you’re planning to get married or have already tied the knot, there are so many exciting things you’ll get to share with your spouse. These can include your first home, children, and whatever's next for your future.
However, understanding how your state’s legal system determines property ownership is incredibly important for your future, especially if you live in a community property state.
Though you may not want to focus on the end of your relationship before it even begins, your state’s laws will play a significant factor in outcomes for separation, divorce, and even when you pass away. This guide will take you through community property, its laws, and how to be ready if you and your spouse live in one of these jurisdictions.
What does community property mean?
Community property refers to the assets, finances, debt, and property a couple acquires during a marriage or civil union. A community property state is a jurisdiction with legislation that determines you and your spouse share ownership of this property equally.
Community property states see spouses as equal contributors to the relationship’s finances and assets regardless of career, education, or financial position. For example, the law considers your car community property if you purchase it after marriage, which means you both own it equally.
What are the community property states?
As of 2025, nine states are considered community property states. These states and their laws include:
| State | Community Property Laws |
| Arizona |
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| California |
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| Idaho |
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| Louisiana |
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| Nevada |
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| New Mexico |
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| Texas |
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| Washington |
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| Wisconsin |
|
Community property versus common law property states
All other jurisdictions outside the nine community property states are considered common law property states. Knowing the difference between the two jurisdiction types is crucial, as it affects what is deemed marital property.
In community property states all property acquired by either spouse is considered marital property and equally owned.
Common law considers property ownership based on spouses’ contributions, education, financial income or need, and many other factors. For example, say you purchase an RV with your personal finances and register it under your name. That property is solely yours, even though you’re married. If you get a divorce, it’ll most likely remain in your possession.
Some states offer a more flexible or optional approach to using community property classification. Alaska's legislation allows couples to choose if they want to combine assets as community property. Florida, Kentucky, South Dakota, and Tennessee also let couples combine certain assets into a community property or spousal trust.
If a couple combines assets as community property or in a community property or spousal trust, estate distribution, taxes, and division of that property will be dealt with as it would in a community property state.
Couples should know the difference between the terms equal and equitable division for their marital property. Equal division is a 50/50 split of property, funds, and other assets. On the other hand, equitable division means a fair allocation of property based on state laws.
What happens when couples move to a community property state?
When you move to a community property state from a common law state, your marital property may have to follow the laws of your new residency. This means that your marital property may become quasi-community property.
Quasi-community property is made of marital assets acquired outside of a community property state. This can include funds, debts, and personal property you bring with you to your new location.
For example, if a couple moves to Washington from a common law state (where property is not automatically divided equally), any property acquired while living in the previous state will be classified as quasi-community property. This means that if one spouse passes away, the property acquired in the previous state may be treated as community property and divided equally between the surviving spouse and other heirs. Similar laws apply to California, Texas, and Wisconsin.
If you’re leaving a community property state, you typically retain an equal share of the marital property acquired during your residency in that state. In other words, the property you gained while in a community property state still holds the same shared ownership, even if you now reside in a different legal system.
Due to the complexity of relocating between these jurisdictions, it’s crucial for couples moving to or from a community property state to seek guidance from a lawyer or a chartered professional accountant.
What is considered community property?
Community property includes assets, debt, and property that you acquire during your marriage. For example:
- Personal property (e.g., vehicles, RVs, purchases for the home, collectibles)
- Real property (e.g., matrimonial home)
- Debt (e.g., loans, mortgages, joint credit cards)
- Investment and retirement accounts
- Intellectual property (IP)
- Joint bank accounts
- Income
- Pets
In some instances, separate property can become community property. To start, you and your spouse can commingle assets by adding separate property to your community property in some form. For example, say you earn money from selling shares in a business you acquired before marriage. If you put that money into your joint bank account, it becomes community property.
Another way to make separate property part of your community property is to use a deed to add your spouse or registered domestic partner to the property’s title or use community funds for property improvements.
You’ll also need to consider out-of-state property. Real estate in a common law property state may still be classified as quasi-community property if you purchase it with funds from a community account. Additionally, certain states like Arizona, consider some debts made outside of the state during a marriage to be community debt.
What is considered separate property?
Generally, separate property is what you acquire before getting married or after a marriage legally dissolves. This can include real estate, vehicles, credit cards, and more.
Inheritances and gifts can remain separate if you choose to keep them in your name only and don’t commingle them with community property. So say you receive a sum of money through an inheritance. If you place that money in a joint bank account, it will become community property.
It’s best practice to look into what your state classifies as separate or community property. This will help you and your spouse organize your assets accordingly. For example, California requires payments for education and training from community income to be repaid if there is a dissolution of marriage and doesn’t classify loans for education as part of community property debt. The spouse who took out the loan for education is solely responsible for repayment.
If you’re unsure of what property or assets may be considered community property, contact a lawyer. Based on your location and relationship status, legal advice can be given on what is considered community or separate property.
Do community property laws affect domestic partnerships?
California, Nevada, and Washington consider any registered domestic partnerships under community property law. If your registered domestic partnership is being dissolved, the courts will take a similar approach to property division as they would with a marriage.
To protect your relationship, you and your partner can create a Cohabitation Agreement. This key document can determine the division of financial responsibilities and property during and after a relationship to better prepare for separation.
Similarly, should one of you pass away without a Last Will and Testament, intestate succession will follow the same rules to distribute your estate. Thorough estate planning is also essential to determine the distribution of property when one partner passes away. This helps ensure your share of the community property passes to your surviving partner with a smoother ownership transition or to a beneficiary that you both agree upon. Additionally, it allows other beneficiaries to receive whatever inheritance you would like to leave them.
How can couples prepare for marriage in community property states?
If you plan to marry in a community property state, you and your fiance can protect your property and assets. A Prenuptial Agreement, or prenup, typically overrides community property law. This document can help you determine what separate property you acquired before your marriage so it doesn’t commingle with your shared property.
You can also use a prenup to determine how any shared property and assets will be divided if you decide to split up. For the decision to be valid, the division of shared property must be fair and equitable.
If you’re already married, you can use a Postnuptial Agreement, also known as a postnup, to prepare for a possible separation. This document is similar to a prenup and outlines the property division based on financial contribution or in a fair, equitable manner that you and your spouse agree on.
Want to learn more about Prenups? Take a look at our 2024 Prenup Report: Public Opinion, Misconceptions, and Motivations
Divorce and separation in community property states
Community property is typically divided equally during a separation or divorce in community property states. This is why some people may refer to these jurisdictions as 50/50 states.
If you and your spouse disagree about the classification of property as community or separate property, you can seek assistance from the court. The property the court classifies as community property will typically be divided equally, though the court also considers what a fair division of community property is in their decision. The property classified as separate property, on the other hand, will remain yours.
Can couples agree to split assets in a community property state?
If you and your spouse decide to separate, you can work together to divide your property even if you don’t have a prenup or postnup. Separation Agreements are legally binding documents that can determine the division of property when pursuing a separation. This can be a mutual decision to do a trial separation or pursue a legal separation filed with the court.
Additionally, when dissolving your marriage, your Separation Agreement can help determine the property division necessary to finalize a divorce. However, your agreement must be fair and balanced to be valid and accepted by the court.
Should you decide to get a divorce, the judge can consider a more equitable division of property and assets if you both agree on how that division will take place. If the judge must intervene due to your inability to make mutual decisions on separating property, they will follow the community property laws.
Navigating the end of a marriage? Take a look at Separation and Divorce: A Complete Guide to better understand your options and steps to take for your relationship.
Community property states and taxes
Several factors affect taxes and community property. Things to consider can include how you file your taxes, any step-up in basis for capital gains on more considerable assets when someone passes away, and much more.
It’s recommended to seek the guidance of a chartered professional accountant to determine the best tax plan. Community property and community property trusts in common law states are very complex.
Estate planning in community property states
A great benefit of community property laws is that they can help prevent a spouse from being completely disinherited. Each spouse owns a one-half interest in the community property, which the other spouse cannot give away. So, even if you don’t leave your half of community property or any of your separate property to your spouse, they’ll still have their own one-half interest in all your community property.
In some cases, this also means community property won’t need to go through probate, as community property with a right of survivorship can also be transferred to your spouse much sooner.
Estate plans are essential for married couples and domestic partners, regardless of which state you call home. Community property states have specific laws regarding intestate succession and how community property is transferred if you pass away without a valid Last Will and Testament. Typically, your share of community property will go to your spouse or any surviving children. The distribution of your separate property will vary based on your jurisdiction's laws.
A valid, up-to-date Last Will ensures your estate is divided according to your wishes and complies with community property law.
Finally, an estate plan is key if you’re a parent and want to protect your children’s future. For example, say you have children from a previous marriage. If it fits your estate’s needs, you may want to consider a Living Trust to safeguard your children’s inheritance. This document can ensure your separate assets are secure for their future.
Want to learn more about estate planning? Take a look at LawDepot’s Complete Guide to Estate Planning to prepare for your and your family’s future.
Be prepared for community property laws
Whether you’re in a domestic partnership, considering marriage, or already married, knowing how to prepare for your future is important. Creating and updating all the necessary legal documents that fit your relationship’s needs is key to being ready in a community property state.
When it comes to complex legislation and determining how to handle community property, it’s essential that you and your significant other receive the guidance of a lawyer to ensure all your legal documents follow the law and fit your relationship best.
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