Community Property

In real estate and marital property law, community property refers to property acquired by either spouse, or both spouses together, during the course of a marriage, except for property that qualifies as separate property. Each spouse holds an equal, undivided ownership interest in community property and generally has equal rights of management, control, transfer, and testamentary disposition. This form of ownership applies in community property states, such as California and Washington, and affects how property is bought, sold, financed, or inherited during and after marriage. Understanding community property rules is especially important in real estate transactions, as both spouses’ interests and signatures may be required to convey or encumber the property.