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Husband and Wife
How is community property managed and who can do what with the property?

How is community property managed and who can do what with the property?

Full question:

What are the rights between Husband and Wife to community property? How is it managed and who can do what with the property?

Category: Husband and Wife
Subcategory: Community Property
Date: 04/07/2025
State: California

Answer:

Generally spouses have the same rights to deal with community property as they do their separate property. This general statement has many conditions and restrictions.

Some of those conditions or restrictions are the following:

A spouse cannot make a gift or dispose of community property for less than it's fair value without the written consent of the other spouse.
A spouse may not sell, convey, or encumber community personal property used as the family dwelling, or the furniture, furnishings, or fittings of the home, or the clothing or wearing apparel of the other spouse or minor children which is community personal property, without the written consent of the other spouse.
A spouse who is operating or managing a business or interest in a business that is all or substantially all community property has primary management and control of the business. However, the spouse has to give notice to the other spouse in the event of the sale or other major conveyance, lease or other major transaction such as a lien on or of the business.
Spouses are considered in a fiduciary duty with respect to the community property assets and debts. This brings with it the highest duty of fair dealing and good faith. It means full disclosure to the other spouse of all information regarding assets, access to all information and records of all assets and debts, etc.
Both spouses must join in the conveyance, moorages or other major transaction involving community property real estate.

These are some of the main matters that spouses need to know about community property while married. This does not address dissolution of marriage or estates.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What are the disadvantages of community property with a right of survivorship?

Community property with a right of survivorship means that when one spouse passes away, the surviving spouse automatically inherits the deceased spouse's share of the community property. A disadvantage is that this arrangement may limit the deceased spouse's ability to leave their share to someone else, such as children from a previous relationship. Additionally, it can complicate estate planning, as all community property is subject to this automatic transfer, potentially leading to unintended consequences for heirs.

Does the wife always get half the house?

In community property states, both spouses generally have equal rights to the property acquired during the marriage, including the family home. This typically means that upon divorce or separation, each spouse is entitled to half of the community property, including the house. However, if the house was acquired before the marriage or through inheritance, it may be considered separate property and not subject to division.

What is a community property spouse?

A community property spouse is a partner in a marriage where all assets and debts acquired during the marriage are considered jointly owned. This means that both spouses have equal rights to manage and control these assets. In community property states, this arrangement affects how property is divided in the event of divorce or death, ensuring that both spouses share equally in the marital estate.

What are the rights of wife over husband?

In a community property marriage, a wife has equal rights to manage and control community property alongside her husband. This includes the right to consent to transactions involving shared assets and the obligation to be informed about financial matters. Both spouses owe each other a fiduciary duty, which includes honesty and full disclosure regarding community property.

What does husband and wife as community property mean?

When a husband and wife are considered community property, it means that any property acquired during their marriage is jointly owned by both spouses. This legal framework ensures that both partners share equally in the benefits and responsibilities of the property. In community property states, this concept is crucial for understanding how assets are divided upon divorce or death.