Married Couples: Who Owns What?
Be sure you know what property is yours to leave or give away.
Married couples usually own lots, if not all, of their valuable property together. If you want to leave everything to your spouse, as many people do, you don't need to worry about what belongs to you and what belongs to your spouse. But if you want to divide your property among several beneficiaries, you need to know just what's yours to leave.
Common-Law States
Most states, except the ones listed below under community property states, use the "common law" system of property ownership. In these states, it's usually easy to tell which spouse owns what. If only your name is on the deed, registration document or other title paper, it's yours. You are free to leave your property to whomever you choose, subject to your spouse's right to claim a certain share after your death. (See Disinheriting Family Members.)
If you and your spouse both have your name on the title, you each own a half-interest. Your freedom to give away or leave that half-interest depends on how you and your spouse share ownership. If you own the property in "joint tenancy with right of survivorship" or "tenancy by the entirety," it automatically belongs to the surviving spouse when one spouse dies -- no matter what the deceased spouse's will says. But if you instead own the property in "tenancy in common" (less likely), then you can leave your half-interest to someone other than your spouse if you wish.
If an item doesn't have a title document, generally you own it if you paid for it or received it as a gift.
Community Property States
If you live in a community property state, the rules are more complicated. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In Alaska, spouses can sign an agreement making specific assets community property.
Generally, in community property states, money earned by either spouse during marriage, and all property bought with those earnings, are considered community property that is owned equally by husband and wife. Likewise, debts incurred during marriage are generally debts of the couple. At the death of one spouse, his half of the community property goes to the surviving spouse unless he left a will that directs otherwise.
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Copyright 2006 Nolo
