Definition of Community Property

Community Property is a system of property division which divides equally all property - no matter in whose name it is held - acquired during the term of the marriage, excluding inheritances and gifts in some jurisdictions.

There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin (quasi-community property). In these jurisdictions property acquired prior to the marriage stays with the party who acquired it. Certain jurisdictions exclude property that comes into the marriage by gift and inheritance. Some community property states allow equitable distribution where justice is served. These rules vary state to state and are fraught with exceptions. Consult local counsel.