When it comes to estate planning and marital property law, understanding how different states treat assets acquired during a marriage is essential. At Katzner Law Group, we help individuals and families in New York and California navigate the complex landscape of asset ownership, estate transfers, and inheritance law. One of the most significant distinctions in property law is the concept of community property.

If you’ve ever wondered, “What states are community property states?” you’re in the right place. This article will define community property, list the states where these laws apply, and explain what it means for you and your estate.

What Is Community Property?

Community property is a legal framework for determining how assets and debts are owned by married couples. Under community property laws, most property acquired by either spouse during the marriage is considered jointly owned—even if only one spouse’s name is on the title or deed.

This is significantly different from common law property states, where ownership is typically determined by whose name is on the asset and where individual income or purchases are not automatically shared.

Key Features of Community Property Law:

• Equal ownership: Assets acquired during marriage belong equally to both spouses.

• Separate property: Assets acquired before marriage or by gift/inheritance are usually considered separate.

• Post-death implications: When one spouse dies, their half of the community property typically transfers to the surviving spouse, depending on state law or estate planning documents.

• Applies to debts as well: Debts incurred during the marriage are generally shared, regardless of who accumulated them.

Understanding these principles is essential when planning your estate, managing taxes, or navigating divorce. The legal implications of community property vary from state to state, but the general rule is this: What’s yours is ours—if it was acquired during marriage.

List of Community Property States (2025): What You Need to Know

As of 2025, there are nine community property states in the United States. In these jurisdictions, community property laws apply automatically unless spouses opt out through legal agreements such as prenuptial or postnuptial contracts.

The 9 Community Property States Are:

1. Arizona

2. California

3. Idaho

4. Louisiana

5. Nevada

6. New Mexico

7. Texas

8. Washington

9. Wisconsin

Each state has its own specific nuances and statutes governing what counts as community property and how it is divided.

Some states, such as California and Texas, apply particularly strict versions of community property rules, including during divorce and inheritance. Others, like Wisconsin, treat community property concepts differently for married couples who choose to opt in.

Optional Community Property States:

In addition to the nine core states, Alaska allows couples to opt into community property through a legal agreement. Though it is not a community property state by default, it provides a mechanism for couples who wish to structure their finances this way.

Community Property States in the U.S.: Which States Apply This Law?

To better understand how each state applies community property laws, here’s a brief overview of a few key examples:

• California: Perhaps the most well-known community property state, California applies strict 50/50 rules to both assets and debts acquired during the marriage. This includes income, real estate, and even retirement benefits. More about California law can be found on the California Courts official website.

• Texas: Texas also enforces rigid community property rules but allows for more flexibility through marital property agreements. Spouses can designate certain property as separate or community by mutual agreement.

• Louisiana: Uniquely, Louisiana’s laws are based in part on the French Napoleonic Code. While it shares many traits with other community property states, its legal terminology and processes differ.

• Wisconsin: Wisconsin is the only Midwestern community property state. It follows the Marital Property Act, which went into effect in 1986. It classifies property based on when and how it was acquired, offering special protections for both spouses.

If you’re moving between states or hold property in multiple states, understanding how each jurisdiction classifies assets is crucial. Property acquired in a community property state may retain its status as community property even if you later move to a common law state.

Community Property vs. Common Law States: Key Differences

If you don’t live in a community property state, you likely live in a common law property state. These include New York and most other U.S. states.

Here’s a quick comparison:

For example, in New York, only the spouse whose name is on the asset is considered the legal owner—unless other agreements or trusts specify otherwise. You can read more about New York-specific property ownership and estate planning at New York State Unified Court System.

Why Community Property Laws Matter in Estate Planning

Community property laws can significantly affect:

• Who inherits what: In community property states, the surviving spouse is automatically entitled to half of all community assets, which can alter how you write your will or establish a trust.

• Tax obligations: Community property may qualify for a double stepped-up basis for the entire property value upon the first spouse’s death, which can reduce capital gains taxes for heirs.

• Divorce outcomes: These laws also affect how property is divided in a divorce, often resulting in a 50/50 split regardless of contribution.

• Creditor rights: In some states, creditors can pursue community property to satisfy the debts of either spouse.

If you live in a common law state but own property in a community property state, your estate plan must account for both jurisdictions. A comprehensive estate strategy will prevent disputes, ensure your intentions are followed, and protect your beneficiaries.

How Katzner Law Group Can Help

At Katzner Law Group, we specialize in estate planning for individuals and families across a wide range of legal landscapes, including those who own property in both community and common law states (as, unlike most attorneys and law firms, we’re licensed in both a community property (California) as well as a common law (New York) state). We understand how state laws affect asset division, inheritance, and spousal rights—and we know how to create plans that comply with both local and out-of-state statutes.

Whether you’re:

• Recently married and wondering how community property laws impact your estate,

• Moving between states and unsure how to classify your assets,

• Or looking to protect your family’s future with a rock-solid estate plan…

…our experienced team is here to provide clarity and peace of mind.

Talk to an Estate Planning Attorney Today

Community property and common laws and can have far-reaching consequences for your estate, especially if you or your spouse have property in one of the nine community property states. Don’t leave these important details to chance.

Call Katzner Law Group at 855-528-9637 or contact us online to schedule a consultation with a knowledgeable estate planning attorney.

Whether you live in California, New York, or own property elsewhere across the country, we’ll help you build a personalized estate plan that protects your legacy and honors your wishes.