California Community Property – A Minority Position

California is in the minority when it comes to the family law concept of “community property.” California is one of only 9 states that recognize community property principles, which the Golden State inherited from its Spanish/Mexican heritage. Community property is a legal doctrine that means that the husband and wife acquire and own property equally: they are co-owners.

What’s the big concern? If you stay married, probably not much concern. However, upon requesting a dissolution of your marriage from the courts, the way property is categorized will determine how the courts divide the property upon dissolving the marriage.

Is there more than one type of California Community Property?

In California, there are basically three categories of property for the purpose of family law: community property, separate property, and quasi-community property. Whether a piece property is characterized as California community property, separate property, or quasi-community property controls how the court will divide that property at the dissolution of the marriage.

California community property is defined as: “all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state. . .” (See California Family Code § 760). So all land and personal property you acquire while you are married are co-owned by both the husband and wife, 50/50.

Now that’s the general rule, and it brings us to the next category – separate property. Separate property is that property that you had coming into the marriage: you owned it prior to marriage. Also, you can acquire separate property after and during marriage if it is by “gift, bequest, devise or descent”, which is basically a gift or inheritance given directly to one of the spouses. (See California Family Code § 770). That will become the separate property of that spouse.

That leaves us with quasi-community property. This is an artful way of dealing with property that is not community property outright. California defines “quasi-community property” as (i) real and personal property, wherever situated, which would have been community property had the owner spouse been domiciled in California at the time of acquisition, and (ii) any property acquired in exchange for such property. (See California Family Code § 125(a) & (b)).

Why are these characterizations important again? Because before dividing up the property upon a divorce, the court must characterize all the property, both real property (your land and everything that’s attached to it) and personal property. Once you characterize the property, the court will ask for valuations for the property. Only then can the court being to divide the property for the dissolution.

California Community Property Can Be Complicated

The area of community property can be complex because property can change characterization by couples through comingling, transmutation or through other legal principles. This article is only to introduce you to the concept of community property laws, and if you have a specific legal question on California community property law, you should seek good legal counsel from a California Attorney .