California is one of nine states that embrace the law of community property. Community property is a theory of law in which the husband and the wife are treated as co-owners of property in a form similar to a partnership.

All of the property owned by married couples in California can be classified as community property, separate property, or quasi-community property. The California legislature has enacted statutes to govern how property, and debts, acquired during a marriage must be classified.

The classification of property as community, separate, or quasi-community will determine how such things are divided between the parties upon dissolution of the marriage. Community property has been defined by the California legislature as "all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state."

In other words, each spouse owns a one-half interest in any property acquired from the date of their marriage to the date of their separation. This holds true unless the item of property meets the definition of separate property.

Separate property is any property that has been acquired by either spouse prior to marriage, after permanent separation, or during marriage by gift or inheritance. Any rents or profits that an item of separate property produces are also separate property.

For example, if someone has left you an item of property in their will it is considered to be your separate property and it will not be split with your spouse upon dissolution.

Quasi-community property is essentially the same as community property. Quasi-community property is a concept that was developed to deal with property that has been acquired by a couple while living outside of California.

The rule basically states if the property would qualify as community property if the person were living in California at the time it was acquired, and then it will be treated as community property in a dissolution proceeding.

For property located outside of California to be considered community property, both spouses must be California residents when the dissolution action is filed with the court. Therefore, the state where a married couple was living when the property was acquired is irrelevant. If they are living in California at the time of dissolution then California's community property laws will apply.

Real estate located outside of the state presents a more difficult jurisdictional problem and should be discussed in detail with your attorney.

Sometimes during a marriage one of the two spouses will produce the majority of the couple's income. It is important to note such income, and all of the property acquired with it, is community property.

Any income produced during marriage not originate from separate property, as it is defined above is community property. In other words, unless the item of property (including real estate) can be traced back to a separate property source, you have a one-half ownership interest in it.

Furthermore, California has a "no-fault" dissolution system. What this means is neither spouse is considered to be at fault for the failure of the marriage. Matters such as infidelity and mental or physical cruelty are not considered when community assets are being divided, i.e. they will not affect the share each spouse receives. Such characteristics are only considered relevant when child custody is an issue in the case.