Posted in Finance, Accounting and Economics Terms, Total Reads: 413
Definition: Common Law Property
Common Law property is a system that determines rightful owner of property acquired during marriage in the event of death of a spouse or divorce. The common property law systems directs that property acquired by a spouse belong solely to that spouse unless the property is explicitly in the name of both spouses.
If a married person get a property, the ownership would be specifically with that person only and not with both the husband and wife, unless specifically mentioned.
For Example- In a common law property system, if a woman buys a house and puts her name on title, the house would specifically belong to her. While in a common law state, the house would automatically be owned by both.
If the couple are staying together, these detailing about the property seems trivial but the ownership details come in handy in case of divorce or upon death.