Divorce is a time that is chock-full of decisions and issues. It may only be when a divorcing party consults with an attorney that the community property issue arises. If you live in a community property state, your divorce property and debt obligations can be unique. Read on to find out more.

Community or Equitable?

The states are divided in their approach to divorce. Almost every state follows equitable distribution laws. Only nine states are community property states. For divorcing parties in those nine states, the couple is considered a community of two. That status applies to couples when they undertake many legal matters but especially when they divorce. While couples in equitable distribution states divide their property and debts based on several factors, couples in community property states divide everything 50/50.

What to Know About Community Property Divorces

The below facts should be discussed with your divorce lawyer. It's important to understand what community property laws will mean for your divorce:

• Community property laws are concerned primarily with assets and debts. Issues about minor-aged children are not connected to community property aspects. In most cases, one won't affect the other. However, divorces that become contentious may have interrelated facets.
• Before considering what community property means to your divorce, it's advisable to gain an understanding of marital property. Assets that are already owned by a party remain separate from divorce property. For example, if you entered the marriage with a sailboat, that sailboat is not part of the community property dealings. Also, property that is won or inherited is not considered marital property. If your spouse inherited some gold bullion, that gold is not part of your divorce property agreement. The same thing goes for debts acquired before the marriage.
• Community property means that everything that is not considered separate property is owned in equal parts by the parties. The home is half owned by each party along with everything else they own. This presents an aspect of community property that can be both fair and unfair. In many marriages, income disparity exists. One party may earn less money than the other but marital property is still divided in half no matter how much each party contributed to the purchases.
• On the flip side, everything owed by the parties is also community debt. That can cause some parties to suffer unfair debt assignments. For example, if one party took out a home equity line of credit on the home to buy their own sailboat, the debt is the responsibility of both parties equally.

Speak to a divorce lawyer in your state and find out more about community property divorces. For more information, contact a divorce lawyer near you.