Community Property – Glossary | RJP Estate Planning

Property & Real Estate

A legal framework in Arizona where assets acquired during marriage are owned equally by both spouses.

Community property is a core concept in Arizona family and estate law. Most property acquired during a marriage is considered equally owned by both spouses. It does not matter which spouse earned the money or whose name is on the account.

What Counts as Community Property

In Arizona, community property includes wages earned by either spouse during the marriage. It also includes property bought with those wages and most other assets acquired while married. There are important exceptions:

Separate property: Assets owned before the marriage, gifts to one spouse, and inheritances stay separate. This holds true as long as they are not mixed with community assets.
Commingling risk: If separate property is mixed with community property, it can lose its separate character. For example, depositing an inheritance into a joint checking account creates this risk.

Why It Matters for Estate Planning

Community property rules affect how assets are split at death or divorce. Each spouse can only direct their half through a will or trust. Knowing what is community versus separate property is essential for an accurate estate plan.

Arizona also offers community property with right of survivorship. This lets the surviving spouse automatically inherit the other half without probate.