 Search the Knowledgebase |
 Browse by Category |
|
|
|
|
|
| What is community property? |
|
Article Details
Last Updated
13th of April, 2010
|
| User Opinions (3 votes) |
66%
33%
|
|
Thank you for rating this answer.
|
Community property refers to the law under which most property acquired during a marriage (with the exception of gifts or inheritance) is owned jointly by both spouses and is divided upon divorce, annulment, or death.
In the US, there are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Puerto Rico as well as several Indian reservations also allow property to be owned as community property. Alaska is an opt-in community property state (property is considered separate unless both parties agree to make it community property through a legal agreement or a community property trust).
Community property has important tax implications regarding ownership as well as debt responsibility in the case that one spouse dies. For example, legally, one spouse is not responsible for individual or authorized user accounts of the other spouse UNLESS they live in a community property state. In these states, the spouse may be held responsible for the debt.
Check with an attorney from your state if you are unsure of your liability, because laws vary between community property states. A creditor's right to seize community property in satisfaction of a debt or other obligation incurred by one/both of the spouses also depends on individual state law.
Not sure how to handle your debt? Find out more about debt help and services.
|
The article has been updated successfully.
