Common Law Property

Common law property is what everyone fights over during a divorce. Whether you think you'll have an amicable divorce or expect a battle, there is always disagreement as to what is community property (any assets or debts acquired during a marriage that are the property of both spouses) vs. common law property (assets and debts you acquire during a marriage that are yours alone).

To complicate matters, there are nine states that are community property states, meaning anything acquired during the marriage belongs to both husband and wife, no matter who bought what and when. The good news is that any debt you ran up belongs to both of you as well.

However, in a common law property state, student loan debt, for example, usually remains with the person who incurred it. If all the assets belonging to the couple in a community property state are not enough to cover all the debts they accumulated, it might be split according to each person’s ability to pay.

You may want to take this little quiz to test your knowledge of community vs. common law property if you are not in a community property state. What belongs to whom?

Q: You bought a house before you got married. Yours or joint?
A: Yours

Q: You purchase a home using your credit history and money, but you put your spouse on the deed. Yours or joint?
A: Joint

Q: You buy a car using only your credit history and income, and your spouse’s name is not added to the title. Yours or joint?
A: Yours

Q: You receive a $20,000 inheritance held in a trust in your name, and the money is never mingled with community property. Yours or joint?
A: Yours

Q: You earned money and saved it in a retirement account prior to marriage, and never added anything else to it after marrying. Yours or joint?
A: Yours

When things get complicated, you might not want to rely on a simple online divorce kit, but rather consult an attorney with lots of experience in divorce matters.