Overview of Community Property in Divorce
Nine states and Puerto Rico utilize the community property standard in divorce cases. The remainder of the states, as well as other U.S. jurisdictions like the District of Columbia, use the equitable division of property standard in divorce proceedings. The nine states that use the community property standard in divorce cases are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
The Community Property Standard
The community property standard requires the division of the assets and debts acquired or accumulated during a marriage equally between the spouses if a divorce occurs. The technical term for these assets and liabilities are marital property and marital debt.
There can be some deviations from the equal division standard. However, there must be a solid reason for this to occur.
Definition of Marital Property and Debt
Marital property and debt is any type of property acquired while the parties are married. Common examples of marital property include the marital residence, money accumulated in savings and other types of financial accounts and motor vehicles. Home furnishings are also a part of the marital property mix.
Marital debt is any type of financial obligation assumed while the parties to a divorce were married. Examples of marital debt oftentimes include a home mortgage, credit card debt and outstanding loans on motor vehicles.
Non-marital Property and Debt
Non-marital property and debt, also known as separate property and debt, is that which was not which was not obtained during the course of the marriage. Examples of separate property includes a car owned and paid for before the marriage starts. A personal loan obtained before marriage is an example of separate debt and not subject to division in a divorce.
Inheritance and the Community Property Standard
If a person inherits property, including cash, during a marriage, that generally will be considered to be separate property. Inheritance usually will be classified as separate property no matter how significant the monetary value of the bequest, provided it clearly was intended for only one of the spouses.
Legal Counsel and Community Property
Due to the complexity of applying the community property standard in a divorce case, legal representation typically is the best course to take. A person pursuing a divorce best protects his rights or interests by engaging a lawyer in a proactive manner. A lawyer typically will schedule a no-obligation and no-cost initial consultation with a person in need of divorce representation.