We talk about this concept of ‘Community Property’ and ‘Separate Property’ when dealing with items and accounts in the Estate. But what do these words actually mean?
California is a Community Property state. According to Family Code § 760, “Except as otherwise provided by statute, all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property.”
So what does that mean exactly? It means the property is shared by the married couple. It is not owned by one or the other – it is owned by both. In many cases that means that the still living spouse inherits everything on the death of the other spouse.
Lived outside of California during part of your marriage then moved here? OK then! That’s called Quasi-Community Property, but it’s treated like community property so don’t panic.
So OK then, what is Separate Property? According to Family Code § 770 it is “(1) All property owned by the person before marriage. (2) All property acquired by the person after marriage by gift, bequest, devise, or descent. (3) The rents, issues, and profits of the property described in this section.” Of course if you’re not married, it’s all separate property.
If a spouse inherited some money from a deceased relative, for example, that would be separate property for purposes of the probate and determining who gets what if there is no will to tell you what to do.
There are, of course, exceptions with both definitions. But we don’t want to confuse you with a bunch of what-if questions. Unsure if your estate has Separate or Community property and what that means to the inheritors? Reach out to us today and we’ll help you figure it out!