Community property

This is property that belongs equally to both spouses. It includes any property, asset, or liability either party acquires during the marriage with the exception of property acquired by gift or inheritance. Parties can opt out of community property laws with a prenuptial agreement or by getting legally separated. One commentator defined community property as the “system whereby the wealth which [the spouses] possess is common, belonging to both by halves.” Vaughn, “The Policy of Community Property and Inter-Spousal Transactions,” 19 Baylor L. Rev. 20 (1967).

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