California is a community state. In fact it’s one of only nine community property states. Community property law stands for the proposition that a husband and wife will be considered co-owners of property similar to a partnership entity.

In this state all the property owned by a couple fits into one of three categories. It is easier community property, separate property, or quasi-community property.

Whether a piece of property is community, separate, or quasi-community property controls how it will be divided upon dissolution of marriage. Under California law community property is defined as all property, real or personal, wherever situated, acquired by married persons during the marriage while domiciled in the state.

Both spouses own property that is acquired between the beginning of the marriage and the date of separation. How can two people on one piece of property? Each owns a one half interest in the property.

Separate property is property that either spouse owns before the marriage, after separation, or property that was received during the marriage either by inheritance or gift. For example, let’s say that you received a large sum of money as inheritance from your rich uncle. The money is yours and will be considered separate property at divorce.

Income that was earned during the marriage is generally considered community property unless the income originates from separate property. In sum, your income during a marriage is going to be considered community property even if it’s held in a separate count in your name or your spouse’s name.

Quasi-Community Property is a little trickier. It is defined under the law as: all real or personal property, wherever situated, acquired before or after the operative date of this code in any of the following ways: (a) By either spouse while domiciled elsewhere which would have been community property if the spouse who acquired the property had been domiciled in this state at the time of its acquisition. (b) In exchange for real or personal property, wherever situated, which would have been community property if the spouse who acquired the property so exchanged had been domiciled in this state at the time of its acquisition.

Quasi-community property is a term that refers to property accumulated by a couple when they lived in an equitable distribution state, before they moved California, the place where they began to accumulate community property. In both Arizona and California, quasi-community property is dealt with just like community property.

Unfortunately there’s an even trickier part: often times separate property can be calm community property during the normal course of the marriage. This does happen frequently and sometimes results in a nasty surprise. If you’re considering a divorce please contact me immediately to discuss these issues and help you avoid nasty surprises. Click on the links below to visit my webpage and schedule a free consultation.