Community Income

DEFINITION of 'Community Income'

Income earned by taxpayers who live in community property states. Community income is considered to belong equally to both spouses, just as with all other property that is owned or acquired by either spouse during the marriage.

BREAKING DOWN 'Community Income'

Income that is earned by either spouse before or after a marriage is not considered to be community income. Community income is earned in Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington and Wisconsin.

RELATED TERMS
  1. Income

    Money that an individual or business receives in exchange for ...
  2. Common Law

    In the United States, a body of unwritten laws based on precedents ...
  3. Common Law Property

    A system used by most states to determine ownership of property ...
  4. Personal Property

    A type of property which, in its most general definition, can ...
  5. Community Property

    A U.S. state-level legal distinction of a married individual's ...
  6. Equitable Division

    A legal theory that guides how property acquired during the course ...
Related Articles
  1. Retirement

    Marriage, Divorce And The Dotted Line

    Does signing a prenuptial agreement put your marriage on shaky ground, or is it just smart planning?
  2. Taxes

    The Tax Benefits Of Having A Spouse

    Check out the perks designed to promote and preserve your post-work savings - if you're married, that is.
  3. Retirement

    Establishing A Revocable Living Trust

    This arrangement allows you to have more control over your estate - both before and after your death.
  4. Your Clients

    How to Help Single Clients Plan for Retirement

    Financial planning often focuses on married couples, but there are lots of unmarried folks who need advice from financial advisors, as well.
  5. Personal Finance

    Tips for Talking About Money at Every Step of a Relationship

    How much you talk about money differs, depending on the stage of the relationship.
  6. Professionals

    How Married Couples Can Maximize Social Security

    Making the most of Social Security can be a complicated thing for married couples, but finding the maximum return is worth the laborious process.
  7. Budgeting

    How to Create a Budget With Your Spouse

    Learn how to create a budget with your spouse, whether you're a newlywed or you've been married for decades.
  8. Insurance

    How Life Insurance Works in a Divorce

    Learn the implications of life insurance in a divorce situation, and identify the steps you should take to ensure your policies are sorted out post-divorce.
  9. Investing Basics

    Divorce Funding: A New Investment Opportunity?

    Learn how companies are making millions investing in the broken marriages of others. Discover how one person's divorce can be another's investment opportunity.
  10. Professionals

    File and Suspend: Still An Option, But Act Fast

    File and suspend is about to expire. Those eligible should drop everything and see whether it makes sense for them.
RELATED FAQS
  1. What are Social Security spousal benefits?

    Social Security spousal benefits are partial retirement or disability benefits granted to the spouses of qualifying taxpayers.  Qualifying ... Read Full Answer >>
  2. Are Social Security benefits affected by marriage?

    The amount of Social Security benefit you are eligible to collect upon retirement is not affected by marriage. Your benefit ... Read Full Answer >>
  3. How can I protect my business from my spouse during a high net worth divorce?

    For high net worth individuals (HNWIs), deciding to end a marriage through divorce brings special circumstances to consider. ... Read Full Answer >>
  4. When is litigation better than mediation in a high net worth divorce case?

    Typically, litigation is better than mediation in high-net-worth divorce cases for two major situations – when there are ... Read Full Answer >>
  5. Why are high net worth divorces considered more challenging than other divorce cases?

    All divorces are emotionally difficult and create a financial strain on the parties involved. As it pertains to dividing ... Read Full Answer >>
  6. How do Social Security benefits for widows or widowers work?

    If you are the surviving widow or widower of a deceased worker who would have been eligible to receive Social Security benefits ... Read Full Answer >>
Hot Definitions
  1. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  4. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  5. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
Trading Center