Community Property

In community property states, all property and wealth acquired during marriage belong equally to the husband and the wife. For example, if a married man living in a community property state buys a car, his wife automatically owns half of the car; the husband cannot sell the car without his wife's permission. Both the husband and the wife own an undivided, one-half interest. Not more that one-half can be disposed of by either party individually by will.

At death, half of the property goes to the surviving spouse. The other half goes to the decedent's designated recipients. This half is assumed to be subject to probate. The half passing to the surviving spouse is not.

When a marriage in one of the community-property states dissolves, the presumption is that assets are community property unless proven otherwise. Such assets are normally subject to probate fees.

If the community property asset does not pass automatically to the spouse, it can be split into the respective proportions. Each spouse can claim the property as a separately-owned asset with its own liability and probate values.

Assets that are not community property between husband and wife are separate property.