Community property is legally defined as "The holdings and resources owned in common by a Husband and Wife," according to The Free Dictionary's Legal Dictionary.
This means that it is the property acquired by the couple over the course of their marriage.
Laws dictating the distribution of this property deal with cases of divorce or death by one of the partners.
Even when an item was acquired in only one partner's name, it becomes joint property.
By contrast, separate property are items or assets brought into the marriage by each partner.
In California, community property does not include property that is acquired by gift or inheritance, even if the gift or inheritance was acquired during the marriage.
Many former spouses and those going through a divorce want to know this answer concerning inheritance as community property.
Although individuals should still discuss this subject with a legal attorney to ensure that they understand all of their rights regarding community assets or material items and inheritance.
Community property also includes income that is earned due to a partner's labor during the marriage before separation.
This includes stock options, an employer's contributions to a profit-sharing plan, vacation pay and other employment benefits.
However, the partner's earnings acquired or accumulated after the judgment of legal separation are their own property, as well as any earnings acquired while living separate and apart from their spouse.
Determining when separation occurred is one of the first steps in determining who is entitled to what property and what is considered separate party.
A separation is not merely an argument in which one partner leaves the home for a night or two, but rather occurs when the couple separates with no intent to resume the marriage.
The conduct of both parties must represent a final breakup without the intent to get back together.
There is a process whereby the spouses may decide to change the status of property either before or during marriage through transmutation.
Through transmutation, it may be changed from separate into communal, community properties into separate properties, or separate property of one partner into separate property of the other.
This may involve all or some of their property.
California is one of just nine states that recognize the law of community property, so those who do not reside in the state should consider the laws pertaining to their own state regarding the division of property and assets in the event of divorce or death of one partner.