Community property laws are important to be aware of in case you plan on moving to a community property state or already live in one. These states view any property acquired during a marriage as owned by both partners. Wealth gained prior to the marriage and inheritances acquired at any time, however, are considered separate property, so be sure to keep these assets out of commingled funds if needed. Estate planners should also plan accordingly and be aware that when one spouse dies, half of the married couple’s assets become part of the estate, which can result in large tax bills. Further, because both spouses have ownership over all assets, neither partner can make a gift of their joint property without consent of the other. These community property laws are beneficial to keep in mind, so that you can best benefit your assets and marriage.
See Sonia Talati, How Community Property States Are Different, Barron’s Penta, June 28, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
