Community Property vs. Common Law Property Systems

Subject: Analysis of Community Property and Common Law Property Systems in Family and Property Law

Community Property System:

Marriage is viewed as an economic partnership.

Any asset acquired during the marriage is presumed to be community property, regardless of whose name is on the title.

Applies in nine U.S. states: California, Texas, Arizona, Louisiana, Nevada, New Mexico, Washington, Idaho, and Wisconsin.

Community property states mandate an equal 50/50 split of marital property in a divorce.

Common Law Property System:

Property rights are determined by title ownership. Assets acquired by one spouse are presumed to belong solely to that spouse.

Property is divided fairly, but not necessarily equally, in a divorce.

Courts consider factors like length of the marriage, each spouse's financial and non-financial contributions, future earning capacity, standard of living during the marriage, health and age of the spouses, dissipation of assets, custodial responsibilities for children, and agreements between the spouses regarding ownership or anticipated division of property.

Key Comparisons and Additional Considerations:

Both systems address property transformation from separate to marital or vice versa through transmutation and commingling.

In community property states, real estate acquired during the marriage belongs to both spouses equally. In common law states, ownership is determined by the title deed