Wisconsin is one of a handful of states that observes “community property” law, which is a way for splitting spouses to deal with the tough task of dividing assets during a divorce. So what does community property mean, and how does it work?
Community property means that when a married couple splits their marital assets during divorce, each spouse is granted a 50 percent stake in each asset. There are slight variations in the specifics of the community property laws from state to state, but this the general rule of community property.
So then the next logical question is “what qualifies as community property?” Well, any asset you or your spouse acquired during the marriage unless it was earned as a gift or as part of an inheritance is considered community property. Your home, your income, interest earned on business ventures, furniture: all of it can fall under the umbrella of community property. However, any assets obtained after the date of separation do not count towards community property.
There are wrinkles to community property laws. For example, there have been cases where “semi” or “quasi” community property has been determined. This describes cases where property that was separate at the beginning of or during a marriage has become communal over the course of time.
Knowing that Wisconsin is a community property state, divorcing couples need to be prepared for this way of dividing assets and property. It can be a complicated process, but it doesn’t have to take you by surprise.
Source: FindLaw, “Community Property Overview,” Accessed Aug. 20, 2014
