Community property also called Community of Property is a marital property regime that originated in civil law jurisdictions but is now also found in some common law jurisdictions.. Community of property regimes can be found in countries around the world including Sweden, Germany, Italy, France, South Africa and parts of the United States. Under community property regimes, depending on the jurisdiction, property owned by one spouse before marriage is automatically owned by the other spouse, and will become that spouse's separate property, upon divorce. All property that remain in the name of one spouse during marriage is automatically acquired by the other spouse as to 50% of its value, subject to a loss of 50% of all property upon divorce. Property owned by one spouse after the marriage is sometimes referred to as the "separate property" of that spouse. There are instances in which the community can gain an interest in inherited property and even situations in which gifts can be "transmuted" into community property.
Variations
Community of Acquests and Gains: Each spouse owns an undivided half-interest in all property acquired during the marriage, except for property acquired by gift or inheritance during the marriage, which is separate property; or which traces to separate property acquired before the marriage, which remains separate property; or which is acquired during a period when the couple are permanently living separately and apart, which is also separate property. This genre of community property is also called "ganancial community property."
Community of Profit and Loss: similar to above but liabilities are separate property.
Community of Personal and Marital Property: Community property consists of all property, personalty and realty, acquired during the marriage; and all personalty acquired before the marriage. Realty acquired before marriage is separate property. .
Limited Community Property: Similar to community of acquests and gains but certain marital property is separate property.
Universal or Absolute Community Property: All pre-marital and marital property is community property. However, if there are children from a prior marriage, the property associated with that marital community may be segregated from the community property of a subsequent marriage, to ensure the children of the prior spouse have an inheritance.
In South Africa, if a couple does not sign an antenuptial contract, before a notary public, which is subsequently registered at a deeds office, prior to marriage, they are married in community of property, which means that all of their assets and liabilities are merged into a joint estate during their marriage, in which each spouse has an undivided half-share. Each spouse has equal power to deal independently with the estate, except that certain major transactions require the consent of both spouses. One of the consequences of community of property in South Africa is that if one spouse is declared insolvent during the marriage, the other also becomes insolvent, a potentially devastating consequence.
The United States has nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska has also adopted a community property system, but it is optional. Spouses may create community property by entering into a community property agreement or by creating a community property trust. In 2010, Tennessee adopted a law similar to Alaska's and allows residents and non-residents to opt into community property through a community property trust. The commonwealth of Puerto Rico allows property to be owned as community property also as do several Native American jurisdictions. Division of community property may take place by item by splitting all items or by values. In some jurisdictions, such as California, a 50/50 division of community property is strictly mandated by statute so the focus then shifts to whether particular items are to be classified as community or separate property. In other jurisdictions, such as Texas, a divorce court may decree an "equitable distribution" of community property, which may result in an unequal division of such. In non-community property states property may be divided byequitable distribution. Generally speaking, the property that each partner brings into the marriage or receives by gift, bequest or devise during marriage is called separate property. See division of property. Division of community debts may not be the same as division of community property. For example, in California, community property is required to be divided "equally" while community debt is required to be divided "equitably".
