What are the community property rights of spouses?

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:
  • State: California

Answer:

In general, spouses have equal rights to manage community property, similar to their separate property. However, there are important conditions and restrictions:

  • A spouse cannot gift or sell community property for less than its fair value without the other spouse's written consent.
  • A spouse may not sell, convey, or encumber community personal property used as the family home, or the furnishings and clothing of the other spouse or minor children, without written consent from the other spouse.
  • If a spouse manages a business that is primarily community property, they have primary control over it. However, they must notify the other spouse before major transactions, such as selling or leasing the business.
  • Spouses owe each other a fiduciary duty regarding community property. This includes a duty of fair dealing, good faith, and full disclosure of all relevant information about assets and debts.
  • Both spouses must agree and sign off on any major transactions involving community property real estate.

These points highlight key aspects of community property rights during marriage. This answer does not cover issues related to divorce or estate matters.

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

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.

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