Community Property

Posted in Finance, Accounting and Economics Terms, Total Reads: 380
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Definition: Community Property

A property acquired by either of the spouse during the course of marriage is called as Community Property. It is also known as marital property as it is acquired during the course of marriage. This term is widely used in the US.


This system of community property was introduced in the US during the civil law jurisdiction and has now found a place in common law jurisdiction. This system was inherited from the ganancial community system in Mexico, which was itself taken from Spanish law and initially from the visigothic code.


According to community property the property inherited by both spouses is taken as a single family unit and is divided only in case of divorce, annulment or death. In some jurisdiction the division of these assets is done on a 50-50 basis whereas in other jurisdictions there is a concept of equitable distribution in which the property is divided on factors like substantial contribution to the accumulation of the property, market and emotional value, alimony payments, child support obligations etc. Hence these jurisdictions do not have a 50-50 distribution.

 

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