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Married Couples: Who Owns What?


Married people can still own separate property. For example, property inherited by just one spouse belongs to that spouse alone. A spouse can leave separate property to anyone; it doesn't have to go to the surviving spouse.

Married couples don't have to accept the rules about what is community property and what isn't. They can sign a written agreement that makes some or all community property the separate property of one spouse, or vice versa.
 

Community PropertySeparate Property
Money either spouse earns during marriageProperty owned by one spouse before marriage
Things bought with money either spouse earns during marriageProperty given to just one spouse
Separate property that has become so mixed with community property that it can't be identifiedProperty inherited by just one spouse

These rules apply no matter whose name is on the title document to a particular piece of property. For example, a married woman in a community property state may own a car in only her name -- but legally, her husband may own a half-interest. Here are some other examples:
 

PropertyClassificationWhy
A computer your spouse inherited during marriageYour spouse's separate propertyProperty inherited by one spouse alone is separate property
A car you owned before marriageYour separate propertyProperty owned by one spouse before marriage is separate property
A boat, owned and registered in your name, which you bought during your marriage with your incomeCommunity propertyIt was bought with community property income (income earned during the marriage)
A family home, which the deed states that you and your wife own as "husband and wife" and which was bought with your earningsCommunity propertyIt was bought with community property income (income earned during the marriage) and is owned as "husband and wife"
A camera you received as a giftYour separate propertyGifts made to one spouse are that spouse's separate property
A checking account owned by you and your spouse, into which you put a $5,000 inheritance 20 years agoCommunity propertyThe $5,000 (which was your separate property) has become so mixed with community property funds that it has become community property

Several community property states offer an advantageous way of holding title to community property that avoids probate at the death of the first spouse. It's called "community property with right of survivorship." If a couple holds title to property -- a house, for example -- that way, when one spouse dies the house will automatically belong to the survivor, without any probate court proceedings.

Copyright 2006 Nolo