Community Property

In many community property law states, a husband and wife may enter into a PREMARITAL AGREEMENT that there will be no community property. Divorce terminates the community relationship in all community property states; however, the manner in which the property is divided differs.

Upon the dissolution of a marriage, the source of property becomes important in determining whether an asset is community or separate property. Ordinarily, separate property includes that which is acquired through gift, DESCENT AND DISTRIBUTION, and devise or bequest. Each partner in a PROPERTY SETTLEMENT reacquires whatever he or she owned prior to the marriage.

In some states, community property is divided equally; in others, the division is based on the court's discretion. In certain jurisdictions, the guilt of a spouse in a divorce action can be a factor in reducing his or her share of the community property.