Legal Definitions - community property

Community property refers to assets that are acquired during a marriage by either spouse. This can include property, income, and even debt. In some states, such as California, any income, real estate, or other property acquired by either spouse during the marriage belongs to both spouses. This means that both spouses own everything equally, regardless of who purchased it or earned the income.

• John and Jane get married and buy a house together. In a community property state, both John and Jane would own the house equally, even if only one of them paid for it.
• Samantha and David get married and David starts a business. In a community property state, Samantha would have a legal claim to half of the income generated by the business, even if she did not contribute to it directly.
• Mark and Lisa get married and Lisa has student loan debt. In a community property state, Mark would be responsible for half of the debt, even if he did not take out the loans.

These examples illustrate how community property laws can affect the ownership and responsibility of assets acquired during a marriage. It is important to understand the laws in your state and how they may impact your financial situation.