Determining Property Ownership for Married Couples

• California Law:
  • California is a community property state. This means that spouses share 50/50 ownership of most property acquired during the marriage, even if only one spouse's name is on the title slip or deed. However, community property ecludes income that was inherited or was a gift.
  • Each spouse is free to leave his or her half of the property as a desired, but has no control over the other spouse's half. However, each person is free to give his or her separate property in its entirety to whomever they wish. (see definition of separate property)
    
    
• What is Community Property?
  • Community Property is all income received by either spouse from employment or by other means (except by gift of inheritance to one spouse) during the marriage, unless the husband and wife have agreed otherwise through a separate agreement.
    
    
• What is Separate Property?
  • All property owned by either spouse prior to marriage
  • All property received by gift or inheritance
  • All property earned or accumulated by one spouse after permanent separation
    
    
• When does Separate Property become Community Property?
  • Commingling: When the funds from separate property is intermixed with community property to the extent that it is indistinguishable, the separate property becomes community property.
  • Separate property can become community property when the separate property owner transfers the property to shared ownership in writing.

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