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Community property (United States) also called community of property (South Africa) is a marital property regime whereby property acquired during a marriage is considered to be owned by both spouses and subject to division between them in the event of divorce. Conversely, property owned by one spouse before the marriage, along with gifts and inheritances they receive during marriage, are treated as that spouse's separate property in the event of divorce. In some cases, separate property can be "transmuted" into community property, or be included in the marital estate for reasons of equity. Community property can also be relevant in probate law, during the disposition of a will.

The concept of community property originated in civil law jurisdictions but is now also found in some common law jurisdictions. Community property regimes can be found in countries around the world including Sweden,^[1] Germany,^[2] Italy,^[3] France,^[4] South Africa^[5] and parts of the United States.^[6] In civil law countries such as Spain, France and Germany, spouses can generally select one of several matrimonial regimes to divide property, with community property being one option, along with the separate property system and a participation system.^[7]^[8]^[9]

Variations

Community of Acquests and Gains: Each spouse owns an undivided half-interest in all property acquired during the marriage, except for property acquired by gift or inheritance during the marriage, which is separate property; or which traces to separate property acquired before the marriage, which remains separate property; or which is acquired during a period when the couple are permanently living separately and apart (e.g., legal separation, actual, or de facto), which is also separate property. This genre of community property is also called "ganancial community property." (Fr communauté réduite aux acquêts, Sp sociedad de gananciales, Du gemeenschap van aanwinst van goederen, gemeenschap van vruchten en inkomsten, Ger Errungenschaftsgemeinschaft, It comunione degli acquisti)
Community of Profit and Loss: similar to above but liabilities ("losses") are separate property. (Du gemeenschap van winst en verlies, Afrik gemeenskap van wins en verlies)
Community of Personal and Marital Property: Community property consists of all property, personalty and realty, acquired during the marriage; and all personalty acquired before the marriage. Realty acquired before marriage is separate property. (Fr communauté de meubles et acquêts, Du gemeenschap van inboedel, Ger Fahrnisgemeinschaft).
Limited Community Property: Similar to community of acquests and gains but certain marital property is separate property. (Fr communauté de biens limitée, Du beperkte gemeenschap van goederen, Swiss Ger Ausschlussgemeinschaft)
Universal or Absolute Community Property: All pre-marital and marital property is community property. However, if there are children from a prior marriage, the property associated with that marital community may be segregated from the community property of a subsequent marriage, to ensure the children of the prior spouse have an inheritance. (Fr communauté universelle, Sp comunidad absoluta de bienes, Du algehele gemeenschap van goederen, Ger allgemeine Gütergemeinschaft, It comunione universale dei beni)

Jurisdictions

Custom of Paris in New France

Russia

In Russia, community property was introduced by the Soviet government in 1926. Prior to that, laws evolved by the late 18th century dictated separate property regime, so a married woman was (at least in theory) in full charge of her property, including the dowry and whatever she acquired personally during the marriage. The new Soviet system replaced this with a limited form of community property, namely community of acquisitions, and it survives to the present day. The only significant change, made in 1995, was the introduction of marital agreement which didn't exist under the Soviet law. Such an agreement may be signed at any time before or after conclusion of the marriage. It may regulate the spouses' rights on a basis entirely alien to the statutory regime, but shouldn't put any of them (especially one who cannot provide for themselves) into a clearly unfavorable position.^[10]

South Africa

In South Africa, if a couple does not sign an antenuptial contract, before a notary public, which is subsequently registered at a deeds office, prior to marriage, they are married in community of property, which means that all of their assets and liabilities (even those acquired before the marriage) are merged into a joint estate during their marriage, in which each spouse has an undivided half-share. Each spouse has equal power to deal independently with the estate, except that certain major transactions require the consent of both spouses.^[11] One of the consequences of community of property in South Africa is that if one spouse is declared insolvent (bankrupt) during the marriage, the other also becomes insolvent, a potentially devastating consequence.^[12]

United States

The United States has nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.^[13] Four other states have adopted optional community property systems. Alaska allows spouses to create community property by entering into a community property agreement or by creating a community property trust.^[14] In 2010, Tennessee adopted a law similar to Alaska's and allows residents and non-residents to opt into community property through a community property trust.^[15] More recently, Kentucky adopted an optional community property system in 2020, allowing residents and non-residents to establish community property trusts.^[16] Finally, in 2021 Florida adopted a similar law, allowing citizens and noncitizens to establish community property trusts.^[17] The commonwealth of Puerto Rico allows property to be owned as community property also^[13] as do several Native American jurisdictions.

Division of community property may take place by item by splitting all items or by values. In some jurisdictions, such as California, a 50/50 division of community property is strictly mandated by statute^[18] so the focus then shifts to whether particular items are to be classified as community or separate property. In other jurisdictions, such as Texas, a divorce court may decree an "equitable distribution" of community property, which may result in an unequal division of such. In non-community property states property may be divided by equitable distribution. Generally speaking, the property that each partner brings into the marriage or receives by gift, bequest or devise during marriage is called separate property (not community property). See division of property. Division of community debts may not be the same as division of community property. For example, in California, community property is required to be divided "equally" while community debt is required to be divided "equitably".^[19]

Notes

^ Morley, Jeremy. "Marrying a Swede? Or Swedish and Getting Married? Don't You Need a Prenuptial Agreement?".
^ "Is there a statutory matrimonial property regime and if so, what does it provide? - Couples in Germany". www.coupleseurope.eu.
^ "Is there a statutory matrimonial property regime and if so, what does it provide? - Couples in Italy". www.coupleseurope.eu.
^ "Is there a statutory matrimonial property regime and if so, what does it provide? - Couples in France". www.coupleseurope.eu.
^ "Marriage in Community of property - Family law".
^ "Marital Property: Who Owns What?". Findlaw.
^ Gerhard, Ute (1997). Frauen in der Geschichte des Rechts von der frühen Neuzeit bis zur Gegenwart (in German). München. ISBN 978-3-406-42866-1. OCLC 243866547.{{cite book}}: CS1 maint: location missing publisher (link)
^ Ramos Pazos, René (2007). Derecho de Familia. Santiago: Editorial Jurídica de Chile. pp. 158–160.
^ Tous, P., and Éric Fongaro. Droit international privé patrimonial de la famille. LexisNexis, 2017.
^ Prof. Masha Antokolskaia (2008). "Property relationship between spouses — Russia" (PDF). CEFL Online. Retrieved 24 September 2022.
^ "Marriage: the legal aspects" (PDF). Law Society of South Africa. 2011. Archived from the original (PDF) on 14 November 2012. Retrieved 2 February 2013.
^ "Getting Married in Community of Property – Your Rights and Liabilities".
^ ^a ^b "Internal Revenue Manual – 25.18.1 Basic Principles of Community Property Law". www.irs.gov. Retrieved 2016-08-05.
^ See Alaska Stat. §§ 34.77.020 – 34.77.995
^ McDaniel, A. Stephen; Adams Jr, C. Michael. "Community Property Joint Revocable Trust" (PDF). Wyatt Tarrant & Combs.
^ Kentucky Revised Statutes §§ 386.620, 622, 624.
^ Moore, Blakely. "Everything You Need to Know About Florida's Community Property Trust Act". PTM Trust and Estate Law.
^ See California Family Code section 2550.
^ See In re Marriage of Eastis, 47 Cal. App. 3d 459 (1975).

References

Gail Boreman-Bird. Cases and Materials on California Community Property, 10th edn. Revised by Jo Carrillo. St. Paul, Minn.: West Academic Publishing, 2011.
Jo Carrillo. Understanding California Community Property Law. New Providence, NJ: LexisNexis, 2015.
Jan P Charmatz & Harriet Spiller Daggett, eds. Comparative Studies in Community Property Law. Baton Rouge: Louisiana State University Press, 1955 (repr: Westport, Conn.: Greenwood Press, 1977).
Charlotte K. Goldberg. Examples & Explanations: California Community Property, 5th edn. NY: Wolters Kluwer, 2016.
Robert L. Mennell & Jo Carrillo. Community Property in a Nutshell, 3rd edn. St. Paul, Minn.: West Academic Publishing, 2014.
William A. Reppy Jr. Community Property, 18th edn. Chicago: Thomson/BarBri Group, 2003.
William A. Reppy Jr., Cynthia A. Samuel, & Sally Brown Richardson. Community Property in the United States, 8th edn. Durham, NC: Carolina Academic Press, 2015.

[swedenInternationalFamily-1] Morley, Jeremy. "Marrying a Swede? Or Swedish and Getting Married? Don't You Need a Prenuptial Agreement?".

[germanyCouplesEurope-2] "Is there a statutory matrimonial property regime and if so, what does it provide? - Couples in Germany". www.coupleseurope.eu.

[couplesEuropeItaly-3] "Is there a statutory matrimonial property regime and if so, what does it provide? - Couples in Italy". www.coupleseurope.eu.

[couplesEuropeFrance-4] "Is there a statutory matrimonial property regime and if so, what does it provide? - Couples in France". www.coupleseurope.eu.

[divorceLawsSouthAfrica-5] "Marriage in Community of property - Family law".

[findLawUSMineYours-6] "Marital Property: Who Owns What?". Findlaw.

[7] Gerhard, Ute (1997). Frauen in der Geschichte des Rechts von der frühen Neuzeit bis zur Gegenwart (in German). München. ISBN 978-3-406-42866-1. OCLC 243866547.{{cite book}}: CS1 maint: location missing publisher (link)

[8] Ramos Pazos, René (2007). Derecho de Familia. Santiago: Editorial Jurídica de Chile. pp. 158–160.

[9] Tous, P., and Éric Fongaro. Droit international privé patrimonial de la famille. LexisNexis, 2017.

[10] Prof. Masha Antokolskaia (2008). "Property relationship between spouses — Russia" (PDF). CEFL Online. Retrieved 24 September 2022.

[lssa-11] "Marriage: the legal aspects" (PDF). Law Society of South Africa. 2011. Archived from the original (PDF) on 14 November 2012. Retrieved 2 February 2013.

[12] "Getting Married in Community of Property – Your Rights and Liabilities".

[auto-13] "Internal Revenue Manual – 25.18.1 Basic Principles of Community Property Law". www.irs.gov. Retrieved 2016-08-05.

[14] See Alaska Stat. §§ 34.77.020 – 34.77.995

[15] McDaniel, A. Stephen; Adams Jr, C. Michael. "Community Property Joint Revocable Trust" (PDF). Wyatt Tarrant & Combs.

[16] Kentucky Revised Statutes §§ 386.620, 622, 624.

[17] Moore, Blakely. "Everything You Need to Know About Florida's Community Property Trust Act". PTM Trust and Estate Law.

[18] See California Family Code section 2550.

[19] See In re Marriage of Eastis, 47 Cal. App. 3d 459 (1975).

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@@ Line 1: / Line 1: @@
+{{Short description|Marital property regime}}
-{{globalize/US|date=November 2013}}
-[[File:Community property states.svg|thumb|Map of the United States with community property states in red. Additionally, [[Alaska]] is an elective community property state, and of the five inhabited US territories, [[Puerto Rico]] and [[Guam]] are community property jurisdictions.]]
+{{Property law}}
-'''Community property''' is a [[marital property regime]] under which most property acquired during the [[marriage]] (except for gifts or inheritances), the ''community'', or ''communio bonorum'', is owned jointly by both spouses and is divided upon [[divorce]], [[annulment]], or death. Joint ownership is automatically presumed by law in the absence of specific evidence that would point to a contrary conclusion for a particular piece of property.<ref>''See v. See'', [http://online.ceb.com/CalCases/C2/64C2d778.htm 64 Cal. 2d 778] (1966). Chief Justice [[Roger J. Traynor]] of the [[Supreme Court of California]] wrote: "If funds used for acquisitions during marriage cannot otherwise be traced to their source and the husband who has commingled property is unable to establish that there was a deficit in the community accounts when the assets were purchased, the presumption controls that property acquired by purchase during marriage is community property. The husband may protect his separate property by not commingling community and separate assets and income. Once he commingles, he assumes the burden of keeping records adequate to establish the balance of community income and expenditures at the time an asset is acquired with commingled property." The See family, of course, was the family that founded [[See's Candies]], a major manufacturer and retailer of candy on the West Coast of the United States.</ref>
+'''Community property''' (United States) also called '''community of property''' (South Africa) is a [[marital property regime]] whereby property acquired during a [[marriage]] is considered to be owned by both spouses and subject to division between them in the event of divorce. Conversely, property owned by one spouse before the marriage, along with gifts and inheritances they receive during marriage, are treated as that spouse's separate property in the event of divorce. In some cases, separate property can be "transmuted" into community property, or be included in the marital estate for reasons of equity. Community property can also be relevant in [[probate]] law, during the disposition of a [[Will and testament|will]].
-Division of community property may take place by item by splitting all items or by values. In some jurisdictions, such as [[California]], a 50/50 division of community property is strictly mandated by statute<ref>See [http://caselaw.lp.findlaw.com/cacodes/fam/2550-2556.html California Family Code section 2550].</ref> so the focus then shifts to whether particular items are to be classified as community or separate property. In other jurisdictions, such as [[Texas]], a divorce court may decree an "[[equitable distribution]]" of community property, which may result in an ''unequal division'' of such. In non-community property states property may be divided by equitable distribution. Generally speaking, the property that each partner brings into the marriage or receives by gift, bequest or devise during marriage is called '''separate property''' (not community property). See [[division of property]]. Division of community debts may not be the same as division of community property. For example, in California, community property is required to be divided "equally" while community debt is required to be divided "equitably".<ref>See ''In re Marriage of Eastis'', [http://online.ceb.com/CalCases/CA3/47CA3d459.htm 47 Cal. App. 3d 459] (1975).</ref>
+The concept of community property originated in [[civil law (legal system)|civil law]] jurisdictions but is now also found in some [[common law]] jurisdictions. Community property regimes can be found in countries around the world including [[Sweden]],<ref name="swedenInternationalFamily">{{Cite web|url=http://www.internationalfamilylawfirm.com/2018/10/marrying-swede-or-swedish-and-getting.html|title=Marrying a Swede? Or Swedish and Getting Married? Don't You Need a Prenuptial Agreement?|first=Jeremy|last=Morley}}</ref> [[Germany]],<ref name="germanyCouplesEurope">{{Cite web|url=http://www.coupleseurope.eu/en/germany/topics/2-is-there-a-statutory-matrimonial-property-regime-and-if-so-what-does-it-provide/|title=Is there a statutory matrimonial property regime and if so, what does it provide? - Couples in Germany|website=www.coupleseurope.eu}}</ref> [[Italy]],<ref name="couplesEuropeItaly">{{Cite web|url=http://www.coupleseurope.eu/en/italy/topics/2-is-there-a-statutory-matrimonial-property-regime-and-if-so-what-does-it-provide/|title=Is there a statutory matrimonial property regime and if so, what does it provide? - Couples in Italy|website=www.coupleseurope.eu}}</ref> [[France]],<ref name="couplesEuropeFrance">{{Cite web|url=http://www.coupleseurope.eu/en/france/topics/2-is-there-a-statutory-matrimonial-property-regime-and-if-so-what-does-it-provide/|title=Is there a statutory matrimonial property regime and if so, what does it provide? - Couples in France|website=www.coupleseurope.eu}}</ref> [[South Africa]]<ref name="divorceLawsSouthAfrica">{{Cite web|url=https://www.divorcelaws.co.za/marriage-in-community-of-property.html|title=Marriage in Community of property - Family law}}</ref> and parts of the [[United States]].<ref name="findLawUSMineYours">{{Cite web|url=https://family.findlaw.com/marriage/what-s-mine-is-mine-what-s-yours-is-mine-who-owns-what-in.html|title=Marital Property: Who Owns What?|website=Findlaw}}</ref> In civil law countries such as Spain, France and Germany, spouses can generally select one of several [[matrimonial regime]]s to divide property, with community property being one option, along with the [[Matrimonial regime#Separate property systems|separate property system]] and a [[Matrimonial regime#Participation system|participation system]].<ref>{{cite book | last=Gerhard | first=Ute | title=Frauen in der Geschichte des Rechts von der frühen Neuzeit bis zur Gegenwart | publication-place=München | date=1997 | isbn=978-3-406-42866-1 | oclc=243866547 | language=de}}</ref><ref>Ramos Pazos, René (2007). ''Derecho de Familia''. Santiago: Editorial Jurídica de Chile. pp. 158–160.</ref><ref>Tous, P., and Éric Fongaro. ''Droit international privé patrimonial de la famille''. LexisNexis, 2017.</ref>
-Property owned by one spouse before the marriage is sometimes referred to as the "separate property" of that spouse, but there are instances in which the community can gain an interest in separate property and even situations in which separate property can be "transmuted" into community property. The rules vary from jurisdiction to jurisdiction.
-==Basis==
+==Variations==
+{{unreferenced section|date=January 2019}}
-The community property concept originated in [[civil law (legal system)|civil law]] jurisdictions but is now also found in some [[common law]] jurisdictions. The [[U.S. state|states]] of the [[United States]] that recognize community property are primarily in the [[Western United States]]; it was inherited from [[Mexico]]'s ganancial community system,<ref>The half-borrowed term ''ganancial'' (from Spanish ''sociedad de gananciales'') was used in some early US community property opinions, such as ''Stramler v. Coe'', 15 Tex. 211, 215 (1855); it has been used occasionally in some more recent opinions such as ''Hisquierdo v. Hisquierdo'', {{ussc|439|572|1979}}.</ref> which itself was inherited from [[Spanish law]] (a [[Roman law|Roman]]-derived [[civil law (legal system)|civil law]] system) and ultimately from the [[Visigothic Code]].<ref>[[Jean A. Stuntz]], [https://books.google.com/books?id=fd4PuhPOR5kC&pg=PA1 ''Hers, His, and Theirs: Community Property Law in Spain and Early Texas,''] ([[Lubbock, Texas|Lubbock]], [[Texas]]: [[Texas Tech University Press]], 2005), 1-31. The source explains at length the [[Visigoths]]' legal protections for the property rights of married women and how later legal systems on the [[Iberian Peninsula]] continued such rights.</ref> While under Spanish rule, [[Louisiana]] adopted the ganancial community system of acquests and gains, which replaced the traditional [[French law|French]] community of movables and acquests in its [[civil law (legal system)|civil law]] system.<ref>The author of the Louisiana Code was Moreau Lislet; see Hans W. Baade, "Transplants of Laws and of Lawyers", [Doc], retrieved 3 Dec. 2010 <{{cite web |url=http://www.csmb.unimore.it/on-line/Home/Prova/documento36005534.html |title=Archived copy |accessdate=2010-12-03 |deadurl=yes |archiveurl=https://web.archive.org/web/20110722063200/http://www.csmb.unimore.it/on-line/Home/Prova/documento36005534.html |archivedate=2011-07-22 |df= }}>.</ref>
+{{further|Matrimonial regime}}
+* Community of Acquests and Gains:  Each spouse owns an undivided half-interest in all property acquired during the marriage, except for property acquired by gift or inheritance during the marriage, which is separate property; or which traces to separate property acquired before the marriage, which remains separate property; or which is acquired during a period when the couple are permanently living separately and apart (e.g., legal separation, actual, or ''de facto''), which is also separate property.  This genre of community property is also called "ganancial community property." (Fr ''[[:fr:communauté réduite aux acquêts|communauté réduite aux acquêts]]'', Sp ''[[:es:sociedad de gananciales|sociedad de gananciales]]'', Du ''gemeenschap van aanwinst van goederen'', ''gemeenschap van vruchten en inkomsten'', Ger ''[[:de:Errungenschaftsgemeinschaft|Errungenschaftsgemeinschaft]]'', It ''[[:it:Comunione dei beni|comunione degli acquisti]]'')
-The community property system is usually justified by the pragmatic recognition that such joint ownership recognizes the theoretically equal contributions of both spouses to the creation and operation of the [[family]] unit, a basic component of [[civil society]].<ref>See ''Meyer v. Kinzer and Wife'', 12 Cal. 247 (1859). Chief Justice [[Stephen Johnson Field]] of the [[Supreme Court of California]] wrote: "The statute proceeds upon the theory that the marriage, in respect to property acquired during its existence, is a community of which each spouse is a member, equally contributing by his or her industry to its prosperity, and possessing an equal right to succeed to the property after dissolution, in case of surviving the other."</ref>  The countervailing majority view in most U.S. states, as well as federal law, which is based on traditional American [[family values]] and [[gender role]]s, is that marriage is a [[sacrament|sacred]] compact in which a man assumes a "deeply rooted" ''moral'' obligation to [[alimony|support his wife]] [[child support|and child]], whereas community property essentially [[reductionism|reduces]] marriage to an "amoral business relationship".<ref>"[F]amily support obligations are deeply rooted moral responsibilities, while the community property concept is more akin to an amoral business relationship." See ''Rose v. Rose'', {{ussc|481|619|1987}}, and in particular, the ''Rose'' opinion's discussion of ''Wissner v. Wissner'', {{ussc|338|655|1950}}.</ref>
+* Community of Profit and Loss:  similar to above but liabilities ("losses") are separate property. (Du ''gemeenschap van winst en verlies'', Afrik ''gemeenskap van wins en verlies'')
+* Community of Personal and Marital Property:  Community property consists of all property, personalty and realty, acquired during the marriage; and all personalty acquired before the marriage. Realty acquired before marriage is separate property.  (Fr ''[[:fr:communauté de meubles et acquêts|communauté de meubles et acquêts]]'', Du ''gemeenschap van inboedel'', Ger ''[[:de:Fahrnisgemeinschaft|Fahrnisgemeinschaft]]'').
+* Limited Community Property:  Similar to community of acquests and gains but certain marital property is separate property. (Fr ''communauté de biens limitée'', Du ''beperkte gemeenschap van goederen'', Swiss Ger ''Ausschlussgemeinschaft'')
+* Universal or Absolute Community Property: All pre-marital and marital property is community property. However, if there are children from a prior marriage, the property associated with that marital community may be segregated from the community property of a subsequent marriage, to ensure the children of the prior spouse have an inheritance.  (Fr ''[[:fr:communauté universelle|communauté universelle]]'', Sp ''comunidad absoluta de bienes'', Du ''algehele gemeenschap van goederen'', Ger ''[[:de:Gütergemeinschaft (Ehe)|allgemeine Gütergemeinschaft]]'', It ''comunione universale dei beni'')
 ==Jurisdictions==
+{{expand section|date=January 2019}}
+===Custom of Paris in New France===
-The [[United States]] has nine community property states: [[Arizona]], [[California]], [[Idaho]], [[Louisiana]], [[Nevada]], [[New Mexico]], [[Texas]], [[Washington (state)|Washington]], and [[Wisconsin]].<ref>{{Cite web |url=https://www.irs.gov/irm/part25/irm_25-018-001.html |title=Internal Revenue Manual – 25.18.1 Basic Principles of Community Property Law |website=www.irs.gov |access-date=2016-08-05}}</ref> Alaska has also adopted a community property system, but it is optional. Spouses may create community property by entering into a community property agreement or by creating a community property trust.<ref>See Alaska Stat. §§&nbsp;34.77.020 – 34.77.995</ref> In 2010, Tennessee adopted a law similar to Alaska's and allows residents and non-residents to opt into community property through a community property trust.<ref>{{Cite web |url=http://www.wyattfirm.com/uploads/1057/doc/EP_News_and_Update_Community_Property.pdf |title= |last= |first= |date= |website= |publisher= |access-date=}}</ref> The commonwealth of [[Puerto Rico]] allows property to be owned as community property also<ref>{{Cite web |url=https://www.irs.gov/irm/part25/irm_25-018-001.html |title=Internal Revenue Manual – 25.18.1 Basic Principles of Community Property Law |website=www.irs.gov |access-date=2016-08-05}}</ref> as do several Native American jurisdictions. In the case of Puerto Rico, the island had been under community property law since its settlement by Spain in 1493.{{citation needed|date = July 2014}} The U.S. Supreme Court ruled that a similar statute allowing spouses to elect a community property system under Oklahoma law would not be recognized for federal income tax reporting purposes.<ref>Commissioner v. Harmon, 323 U.S. 44 (1944).</ref> The Harmon decision should also apply to the Alaska system for income reporting purposes.<ref>{{Cite web |url=https://www.irs.gov/irm/part25/irm_25-018-001.html |title=Internal Revenue Manual – 25.18.1 Basic Principles of Community Property Law |website=www.irs.gov |access-date=2016-08-05}}</ref>
+{{main|Marriage community}}
+{{expand section|date=January 2019}}
-If property is held as community property, each spouse technically owns an undivided one-half interest in the property. This type of ownership applies to most property acquired by each spouse during the course of the marriage. It generally does not apply to property acquired prior to the marriage or to property acquired by gift or inheritance during the marriage.<ref>{{cite web |last1=Ruesch |first1=Eric |title=Texas Separate vs. Community Property: Know What You Own |url=http://rueschlaw.com/2014/11/texas-separate-vs-community-property-dallas-estate-planning-and-family-law/ |website=rueschlaw.com |accessdate=23 November 2014}}</ref> After a divorce, community property is divided equally in some states and according to the discretion of the court in the other states.{{citation needed|date = July 2014}}
-No two community property states have exactly the same laws on the subject,and The statutes or judicial decisions in one state may be completely opposite to those of another state on a particular legal issue. For example, in some community property states (so-called "American Rule" states), income from separate property is also separate. In others (so-called "Civil Law" states), the income from separate property is community property. The right of a creditor to reach community property in satisfaction of a debt or other obligation incurred by one or both of the spouses also varies from state to state.{{citation needed|date = July 2014}}
-Community property has certain federal tax implications, which the [[Internal Revenue Service]] discusses in its Publication 555.<ref>{{cite web |title=Publication 55: Community Property |url=https://www.irs.gov/pub/irs-pdf/p555.pdf |publisher=Internal Revenue Service |date=March 2012 |accessdate=January 22, 2013}}</ref> In general, community property may result in lower federal [[Capital gains tax|capital gain taxes]] after the death of one spouse when the surviving spouse then sells the property. Some states have created a newer form of community property, called "community property with [[right of survivorship]]." This form of holding title has some similarities to [[joint tenancy]] with right of survivorship. The rules and effect of holding title as community property (or another form of concurrent ownership) vary from state to state.{{citation needed|date = July 2014}}
-Because community property law affects the property of all married persons in the states in which it is in effect, it can have substantial consequences upon dissolution of the marriage from the perspective of the spouse forced to share a valuable asset that he or she thought was separate property.  One of the most spectacular examples of this in recent memory was the [[2011 Los Angeles Dodgers ownership dispute]], in which [[Frank McCourt (executive)|Frank McCourt]] paid his ex-wife [[Jamie McCourt]] about $130 million to avoid a trial over whether the [[Los Angeles Dodgers]] were actually community property after the trial court ruled that the McCourts' [[prenuptial agreement]] was invalid.<ref>Bill Shaikin, [http://articles.latimes.com/2011/oct/17/sports/la-sp-1017-mccourt-divorce-settlement-20111017 "Frank and Jamie McCourt reach settlement involving Dodgers"], ''[[Los Angeles Times]]'', 17 October 2011.</ref>  Indeed, one sign of community property's importance is that the states of California, Idaho, Louisiana, and Texas have made it a mandatory subject on their [[bar examination]]s, so that ''all'' lawyers in those states will be able to educate their clients appropriately.{{citation needed|date = July 2014}}
-==Issues==
-{{Unreferenced section|date=December 2018}}
-Often a new couple acquires a family residence. If the marriage terminates in subsequent years, there can be difficult community property problems to solve. For instance, often there is a contribution of separate property; or legal title may be held in the name of one party and not the other. There may also have been an inheritance or substantial gift from the family of one of the spouses during the marriage, whose proceeds were used to buy a property or pay down a [[mortgage loan|mortgage]]. Case law and applicable formulas vary among community property jurisdictions to apply to these and many other situations, to determine and divide community and separate property interest in such a residence and other property.
-Community property issues often arise in divorce proceedings and disputes after the death of one spouse. These disputes can often be avoided by proper estate planning during the spouses' joint lifetime. This may or may not involve [[probate]] proceedings. Property acquired before marriage is separate and belongs to the spouse who acquired it. Property acquired during marriage is presumed to belong to the community estate except if acquired by inheritance or gift, or by exchange for other separate property. This definition leads to numerous issues that can be difficult to ascertain. For instance, where a spouse owns a business when marrying, it is clearly separate at that time. But if the business grows during the marriage, then what of the additional property acquired during marriage? Do they not result from labor of the spouses? Were some of the funds that were used to pay for the property community funds while a portion of the funds were separate property?
-Community property may consist of property of all types, including real property ("immovable property" in civil law jurisdictions) and personal property ("movable property" in civil law jurisdictions) such as accounts in financial institutes, stocks, bonds, and cash.
-A [[pension]] or [[Life annuity|annuity]] may have first been acquired before a marriage. But if contributions are made with community property during marriage, then proceeds are partly separate property and partly community property. Upon divorce or death of a party to the marriage, there are rules for apportionment.
-[[Option (finance)|Options]] are also difficult to ascertain. A [[stock]] option is a right to purchase [[Share (finance)|shares]] of a company at a fixed price. Companies with growth potential sometimes award stock options as compensation to employees, during times when there is not enough money to pay a suitable salary. By accepting a stock option for compensation, an employee invests his or her own trust in the belief that he or she will help make the company acquire a higher value. Thereafter, the employee works and contributes value to the company. If the company later acquires a higher share valuation, then the employee may "cash in" his options by selling them at the fair market value. The employee's trust in this future value motivates his work without immediate compensation. That effort has value. If the marriage is terminated before the shares are cashed in, then the parties must decide how to apportion the community property portion of the options. This can be difficult. Case law precedents are not yet available for all situations involving stock options.
-==Quasi-community property==
-Quasi-community property is a concept recognized by some community property states. For example, in California, quasi-community property is defined by statute as
+=== Russia ===
-<blockquote>all real or personal property, wherever situated, acquired before or after the operative date of this code in any of the following ways:
+In Russia, community property was introduced by the [[Soviet]] government in 1926. Prior to that, laws evolved by the late 18th century dictated [[separate property]] regime, so a married woman was (at least in theory) in full charge of her property, including the [[dowry]] and whatever she acquired personally during the marriage. The new Soviet system replaced this with a limited form of community property, namely '''community of acquisitions''', and it survives to the present day. The only significant change, made in 1995, was the introduction of [[Prenuptial agreement|marital agreement]] which didn't exist under the Soviet law. Such an agreement may be signed at any time before or after conclusion of the marriage. It may regulate the spouses' rights on a basis entirely alien to the statutory regime, but shouldn't put any of them (especially one who cannot provide for themselves) into a clearly unfavorable position.<ref>{{cite web |url=http://ceflonline.net/wp-content/uploads/Russia-Property.pdf |author=Prof. Masha Antokolskaia |title=Property relationship between spouses — Russia |publisher=CEFL Online |year=2008 |access-date=24 September 2022}}</ref>
+===South Africa===
-(a) By either spouse while domiciled elsewhere which would have been community property if the spouse who acquired the property had been domiciled in this state at the time of its acquisition.
+{{main|Marriage in South Africa#Financial consequences}}
+In South Africa, if a couple does not sign an antenuptial contract, before a [[notary public]], which is subsequently registered at a [[deeds registry|deeds office]], prior to marriage, they are married in community of property, which means that all of their assets and liabilities (even those acquired before the marriage) are merged into a joint estate during their marriage, in which each spouse has an undivided half-share. Each spouse has equal power to deal independently with the estate, except that certain major transactions require the consent of both spouses.<ref name=lssa>{{cite web |url=http://www.lssa.org.za/upload/LSSA%20Marraige%20The%20Legal%20Aspects.pdf |title=Marriage: the legal aspects |publisher=Law Society of South Africa |year=2011 |access-date=2 February 2013 |archive-url=https://web.archive.org/web/20121114203546/http://www.lssa.org.za/upload/LSSA%20Marraige%20The%20Legal%20Aspects.pdf |archive-date=14 November 2012 |url-status=dead }}</ref> One of the consequences of community of property in South Africa is that if one spouse is declared insolvent (bankrupt) during the marriage, the other also becomes insolvent, a potentially devastating consequence.<ref>{{cite web | url=http://www.polity.org.za/article/getting-married-in-community-of-property-your-rights-and-liabilities-2018-09-07 | title=Getting Married in Community of Property – Your Rights and Liabilities }}</ref>
+===United States===
-(b) In exchange for real or personal property, wherever situated, which would have been community property if the spouse who acquired the property so exchanged had been domiciled in this state at the time of its acquisition.<ref>[http://caselaw.lp.findlaw.com/cacodes/fam/50-155.html California Family Code Section 125]</ref></blockquote>
+{{main|Community property in the United States}}
+[[File:Community property states.svg|thumb|Map of the United States with community property states in red. Additionally, [[Alaska]], [[Florida]], [[Kentucky]], and [[Tennessee]] are elective community property states, and of the five inhabited US territories, [[Puerto Rico]] and [[Guam]] are community property jurisdictions.]]
+The United States has nine community property states: [[Arizona]], [[California]], [[Idaho]], [[Louisiana]], [[Nevada]], [[New Mexico]], [[Texas]], [[Washington (state)|Washington]], and [[Wisconsin]].<ref name="auto">{{Cite web |url=https://www.irs.gov/irm/part25/irm_25-018-001.html |title=Internal Revenue Manual – 25.18.1 Basic Principles of Community Property Law |website=www.irs.gov |access-date=2016-08-05}}</ref> Four other states have adopted optional community property systems. [[Alaska]] allows spouses to create community property by entering into a community property agreement or by creating a community property trust.<ref>See Alaska Stat. §§&nbsp;34.77.020 – 34.77.995</ref> In 2010, [[Tennessee]] adopted a law similar to Alaska's and allows residents and non-residents to opt into community property through a community property trust.<ref>{{cite web |url=https://www.wyattfirm.com/uploads/1057/doc/EP_News_and_Update_Community_Property.pdf |title=Community Property Joint Revocable Trust |publisher=Wyatt Tarrant & Combs|first1=A. Stephen |last1=McDaniel |first2=C. Michael |last2=Adams Jr}}</ref> More recently, [[Kentucky]] adopted an optional community property system in 2020, allowing residents and non-residents to establish community property trusts.<ref>[[Kentucky Revised Statutes]] §§&nbsp;[https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49988 386.620], [https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49989 622], [https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49990 624].</ref> Finally, in 2021 Florida adopted a similar law, allowing citizens and noncitizens to establish community property trusts.<ref>{{cite web |url=https://ptmlegal.com/blog/everything-you-need-to-know-about-floridas-community-property-trust-act |title=Everything You Need to Know About Florida's Community Property Trust Act |publisher=PTM Trust and Estate Law|first1=Blakely |last1=Moore}}</ref> The commonwealth of [[Puerto Rico]] allows property to be owned as community property also<ref name="auto"/> as do several Native American jurisdictions.
-Typically, such property is treated as if it were community property at the time of divorce or death of a spouse, but in California, at least, property acquired while married and domiciled in a non-community property jurisdiction does not become community property just because the married parties move to a community property jurisdiction. It is the new event of divorce or death while domiciled in the community property state that allows that state to treat such property as quasi-community property.<ref>Addison v. Addison (1965) 62 Cal.2d 558, 399 P.2d 897.</ref> {{As of|2018}}, only California and Arizona have such laws.<ref>[http://www.divorcesupport.com/divorce/What-is-quot-quasi-community-property-quot--1298.html Divorce Support.com Divorce legal resources]</ref>
+Division of community property may take place by item by splitting all items or by values. In some jurisdictions, such as [[California]], a 50/50 division of community property is strictly mandated by statute<ref>See [https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?division=7.&part=2.&lawCode=FAM California Family Code section 2550].</ref> so the focus then shifts to whether particular items are to be classified as community or separate property. In other jurisdictions, such as [[Texas]], a divorce court may decree an "[[equitable distribution]]" of community property, which may result in an ''unequal division'' of such. In non-community property states property may be divided by equitable distribution. Generally speaking, the property that each partner brings into the marriage or receives by gift, bequest or devise during marriage is called '''separate property''' (not community property). See [[division of property]]. Division of community debts may not be the same as division of community property. For example, in California, community property is required to be divided "equally" while community debt is required to be divided "equitably".<ref>See ''In re Marriage of Eastis'', [http://online.ceb.com/CalCases/CA3/47CA3d459.htm 47 Cal. App. 3d 459] (1975).</ref>
-== See also ==
-* [[Van Camp accounting]], one of two methods used in California for determining the community property interest in a separate business, where one of the spouses has contributed labor to the business
-* [[Pereira accounting]], the other such method
-* [[Marriage community]] in New France
 ==Notes==
+{{Reflist}}
-<references />
 ==References==
@@ Line 61: / Line 47: @@
 * Charlotte K. Goldberg. ''Examples & Explanations: California Community Property'', 5th edn. NY: Wolters Kluwer, 2016.
 * Robert L. Mennell & Jo Carrillo. ''Community Property in a Nutshell'', 3rd edn. St. Paul, Minn.: West Academic Publishing, 2014.
-* William A. Reppy, Jr. ''Community Property'', 18th edn. Chicago: Thomson/BarBri Group, 2003.
+* William A. Reppy Jr. ''Community Property'', 18th edn. Chicago: Thomson/BarBri Group, 2003.
-* William A. Reppy, Jr., Cynthia A. Samuel, & Sally Brown Richardson. ''Community Property in the United States'', 8th edn. Durham, NC: Carolina Academic Press, 2015.
+* William A. Reppy Jr., Cynthia A. Samuel, & Sally Brown Richardson. ''Community Property in the United States'', 8th edn. Durham, NC: Carolina Academic Press, 2015.
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