Community Property

Community property is a means of clarifying the ownership of property acquired and the responsibility for debts incurred during marriage. Generally, in states that follow community property principles, all earnings during marriage and all property acquired with those earnings are considered community property. All debts incurred during marriage are community property debts as well. After a divorce, community property and community debts are usually divided equally between the parties. In the event of death of one spouse, his/her half of the community property will go to the surviving spouse unless his/her will states differently.

California is a Community Property state.

There are nine Community Property states: Arizona California Idaho Louisiana Nevada New Mexico Texas Washington Wisconsin

Also in these type of states when you sell a piece of property that was owned by the couple – in the case of divorce – you must have both signatures on the property unless otherwise state in the divorce decree. Also for married couples if one borrower is qualifying for the mortgage because their scores are higher the other spouse will still be required to sign the security instrument and usually a couple of other documents at closing. The only variance in this is when “separate” property is being purchased. It’s wise to always seek the advise of an attorney in such matters.

Community Property, common in some states, especially the northwest and southwest portions of the United States. It basically states that any property acquired by two people during their marriage, is considered to be owned together, with very few exceptions.

If living in a community property state, it may be necessary to discuss your legal options with your lawyer prior to buying, selling, or refinancing property.

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