Community Property

AAA

DEFINITION of 'Community Property'

A U.S. state-level legal distinction of a married individual's assets. Property acquired by either spouse during the course of a marriage is considered community property. For example, an IRA in the name of an individual with a spouse, accumulated during the course of the marriage, would be considered community property.

Also known as "marital property".

INVESTOPEDIA EXPLAINS 'Community Property'

This legal definition exists to protect spousal rights. Generally, the spouse of the retirement account owner who resides in a community or marital property state must be the sole primary beneficiary of an investment account designated as marital property, unless the spouse provides written consent to have someone else designated as primary beneficiary of the retirement account. Usually, gift and inherited assets are not considered community property.


RELATED TERMS
  1. IRS Publication 555

    A document published by the Internal Revenue Service (IRS) that ...
  2. Common Law Property

    A system used by most states to determine ownership of property ...
  3. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  4. Marital Deduction

    A tax deduction that allows an individual to transfer some assets ...
  5. Married Filing Separately

    A filing status for married couples who choose to record their ...
  6. Married Filing Jointly

    A filing status for married couples that have wed before the ...
Related Articles
  1. Divorcing? The Right Way to Split Retirement ...
    Retirement

    Divorcing? The Right Way to Split Retirement ...

  2. Marriage, Divorce And The Dotted Line
    Retirement

    Marriage, Divorce And The Dotted Line

  3. State Laws Dictate Division Of Joint ...
    Retirement

    State Laws Dictate Division Of Joint ...

  4. Holding Titles On Real Property
    Retirement

    Holding Titles On Real Property

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center