Marital and Separate Property: What’s the Difference?

Community Property States

Some states are “community property states,” and those property rules are a little complicated. Generally, spouses equally own their property regardless of whose name it’s in. Also, half of each spouse’s income is the other spouse’s property, and debts apply to both spouses. You’re living in a community property state if you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin. If you’re living in Alaska, you can sign an agreement to make specific assets community property.

Common Law States

Every other state is a “common law” state, where determining who owns what is much simpler. If only one name is on a registration document or deed, that person owns that piece of property. If both spouses’ names are on the document, both spouses own half interest unless the document specifies otherwise. When an item does not have a document, the spouse who bought it or got it as a gift owns the item.

Now that you know the difference between marital and separate property, everything may still seem complicated, so reach out to a qualified property division lawyer to make your life easier.