Get in touch
(833) 865-2028
inquiries@pacificdebt.com
WHAT ARE COMMUNITY AND COMMON PROPERTY STATES?
Different states view assets and debts acquired during marriage and who exactly owns that property differently. There are two different types of state, community property, and common law property.
What is a Community Property State?
In a community property state, all money earned, assets acquired, and debts incurred during the course of a marriage are equally owned by both husband and wife. At death, all assets go to the surviving spouse unless there is a valid will directing otherwise.
A spouse or member of a couple can own separate assets and dispose of those assets as they wish. Gifts and inheritances are not considered community property.
One of our debt specialists can help you with any questions you might have. Get your free consultation today.
Community Property States
Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska is on “opt-in” community property state where both parties can, in writing, make their property community or keep it separate.
What is a Common Property State?
In a common property or equitable distribution state, property acquired by one spouse belongs 100% to that spouse unless the asset is in both names. All other states are common property.
What is the Advantage to Living in a Community Property State?
The biggest advantage to living in a community property state is in estate taxes and tax planning. In a community state, the surviving spouse receives, tax-free, 50% of the decreases spouse’s separate assets and 100% of commonly held property.
What is Marital Property?
Marital property is any property acquired by either spouse during the marriage. Non-marital property is property acquired before marriage, as a gift or inheritance after marriage.
What is a Spousal State?
Spousal states affect mainly people taking out loans or mortgages. Spouses must sign a document acknowledging the loan, but not taking responsibility for it.
For more information, talk with one of our debt specialists today.
Disclaimer
This is a complex area and this information just the tip of the issues. If you have questions about community and common property, moving states, or debt, contact an attorney.
References
https://www.legalzoom.com/articles/do-you-live-in-a-community-property-state
https://www.meridianhm.com/resource/blog/spousal-states-community-property-states/
https://www.investopedia.com/exam-guide/cfp/property-titling-transfer/cfp2.asp
https://tomorrow.me/trust-worthy/planning-ahead/7-things-you-should-know-if-you-live-in-a-community-property-state/
https://www.myfloridalaw.com/asset-debts/marital-property-vs-non-marital-property-florida/
"Subscribe, follow, like, share, let's get social..."
"To eliminate debt one household at a time, while placing people first."
California Privacy Policy | 
Do Not Sell My Personal Information
GLBA Privacy Notice | CDRI Accredited Member
*Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes.
*Your visit to our website may be monitored and recorded from essential 3rd party scripts.
*Clients who make all their monthly program deposits pay approximately 50% of their enrolled balance before fees, or 65% to 85% including fees, over 24 to 48 months (some programs lengths can go higher). Not all clients are able to complete our program for various reasons, including their ability to save sufficient funds. Our estimates are based on prior results, which will vary depending on your specific circumstances. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. We are not a credit repair firm nor do we offer credit repair services. Our service is not available in all states and our fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. We are licensed where we engage in business. NMLS # 1250953. The use of our services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S. 12-03825. Pacific Debt, Inc. is registered with the California DFPI under the CCFPL registration number 01-CCFPL-1250953-3419036.