4 Things To Know About Community Property During A Divorce

One thing that you'll hear about during your divorce proceedings is separate property and community property. This is because how property is categorized will dictate how it is divided when a couple gets divorced. Here are a few things you'll want to understand about community property as you start the divorce process.

Do All States Acknowledge Community Property Laws?

One thing to understand is that community property laws only apply to couples getting divorced in a few different states. That's why it's so important to understand the local laws in your state and how community property is handled. This can help you be prepared for how property will be divided. 

What Is Considered Community Property?

Community property laws state that any asset that is acquired or purchased during the marriage is considered joint property that belongs to both people. Those assets are then divided upon getting divorced, which can be tricky when assets cannot easily be split down the middle. Meanwhile, assets that you owned prior to the marriage are considered individual property. While there are some exceptions to the rule, that is how it generally works out. For example, receiving an inheritance is considered individual property, and a house that is owned before the marriage can be considered community property. 

How Do You Prove An Asset Is Considered Individual Property?

The easiest way to sort out what is community and individual property is to form an agreement with your spouse about those assets. You can make a list of what is considered individual property, and your spouse will sign off on it so that the item is not subject to division. If you cannot come to an agreement on a specific item, there are rules that are based on the manner and time someone acquired the property. For example, if you owned your vehicle from before you got married, that would be considered individual property. 

Does It Matter If An Asset Is In One Person's Name?

The titles for property, vehicles, and other assets do not matter when it comes to designating if it is community property. If the item was acquired during the marriage, then it is community property. For example, one spouse may have purchased a vehicle under their name during the marriage, but the other spouse drives it. Neither person would be able to claim the vehicle as individual property. 

Reach out to your divorce lawyer if you have questions about community property disputes. 

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