|
Community Property vs. Separate Property
In those states that have community (or marital) property laws,
separate property is generally any property acquired or owned by
one spouse: 1) Prior to the marriage; or 2) As a gift during the marriage; or 3)
By inheritance during the marriage; or 4) As compensation for personal injury;
or 5) By using property from category 1, 2, 3, or 4.
Community
property is any property that is owned by married users that cannot be
classified as separate property. Community property is owned equally by
spouses.
For
example:
Sam and Diane are married in 2000.
1) Sam
owns a $200,000 house he purchased in 1999: Separate property owned by Sam.
2) Diane
receives $20,000 from her grandmother's estate in 2003: Separate property owned
by Diane.
3) Sam
purchases a $5,000 boat in 2004 using a commission check he received from his
work in 2004: Community property owned equally by Sam and Diane.
4) Diane
purchases a car in 2005 with the $20,000 from her grandmother's estate: Separate
property owned by Diane.
Sam:
Community Property Value: $2,500. This is one-half of the value of the
community property he owns with Diane.
Separate Property
Value: $200,000. This is the value of the house he owned prior to the
marriage.
Diane:
Community Property Value: $2,500. This is one-half of the value of the
community property she owns with Sam.
Separate Property Value: $20,000. This is the value of the car she purchased with her separate
property.
See:
Community and Marital Property
| 
