What is the Community Property rule?

Community property states consider all property as being in one of two categories:  separate property or community property.  Separate property doesn’t need to be split at the time of divorce but community property does. 

All income and assets acquired during the marriage are assumed to be equally owned by both parties regardless of how much money each spouse makes.  Community property is assumed to be owned 50/50.  Similarly, any liabilities incurred during the marriage such as loans, mortgages, and credit card balances are equally shared at the time of the divorce.  

Separate property includes all assets owned by one party before the marriage, inherited by one spouse before or during the marriage, or purchased after the date of separation.  Separate debt works the same way:  debt taken on by one spouse before the marriage is that person’s sole responsibility.