What is Community Property?
Note: Community property is a complex area of the law. The article below is not offered as legal advice, but attempts to provide a general, brief introduction to community property.
Eight (8) states in the United State follow a community property system: Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, and Washington. Wisconsin has a “marital property system,” which is a form of community property. Alaska has an elective community property system. In Louisiana, the community property system is also called the “community of acquets and gains."
Generally speaking, all of a married couple’s property is assumed to be community property, unless classified as separate. Louisiana Civil Code Article 2338 provides:
The community property comprises: property acquired during the existence of the legal regime through the effort, skill, or industry of either spouse; property acquired with community things or with community and separate things, unless classified as separate property under Article 2341; property donated to the spouses jointly; natural and civil fruits of community property; damages awarded for loss or injury to a thing belonging to the community; and all other property not classified by law as separate property.
Usually, the time at which a given asset or debt is acquired defines whether said asset or debt is classified as community property or separate property. The date on which a couple gets married is when the community of acquets and gains begins. The date on which a spouse files for divorce is considered the date of termination of the community.
Example 1: Spouse 1 incurred a debt prior to getting married (i.e. prior to the start of the community property regime), and thus, said debt is considered the separate debt of Spouse 1.
Example 2: Spouse 1 and Spouse 2 get married. After getting married, Spouse 1 and Spouse 2 buy a house, but only Spouse 1’s name is on the mortgage. The house and the mortgage are both considered part of the community of acquets and gains. Related video content.
Most couples who decide to get divorced also decide to divide up their property which forms a part of the community of acquets and gains. This blog and video content explore other aspects of community property divisions.
Our attorneys are experienced with community property divisions. Call us or schedule a consultation online to discuss your specific situation.