Community property is the property acquired by either spouse during the period of marriage. It is different from separate property. The divorce settlement agreement should include all community property. A spouse may also be eligible for some reimbursement claims based on their economic contribution.

The community property or marital property thus acquired warrants a "50-50" division. This forms the starting point of resolution of property matters in cases of divorce. However, a spouse might look at other sophisticated legal theories and affect the approach to division of community property. This process involves a huge legal fee.

This Equitable distribution is based on consideration of numerous factors which include individual and respective contributions to accumulation of the said property. Consideration in such matters has to begin at some place and most judges seem to favor the 50-50 division for these determinations.

If both parties of a divorce agree to a written property division, most courts will approve of the same all the time. The written settlement agreement thus arrived upon must include all assets like bonds, cars, house, stocks, retirement benefits etc. and liabilities such as credit cards, taxes, mortgages, loans etc. It is only when the parties fail to come to a written settlement, the court intervenes and divides the community property "in a manner the court deems just and right, having due regard for the rights of each party and any children of the marriage". Despite the popular idea that the court divides the community property into 50-50, the court is not required to do so. The other factors a court may take into account in division of community property are health, age, fault in marriage, disparity of income, education and training, nature of property, capabilities and custody of children. It is absolutely at the discretion of the court, how it will divide the community property.

Separate property of a spouse can consist of

(1) The property owned, claimed or acquired before marriage;

(2) The property coming to the spouse as a result of gift, inheritance or devise; or

(3) The financial recovery arising out of personal injuries of a spouse sustained during the marriage (excludes recovery of loss of earning capacity while married).

In cases of divorce, the court does not award the separate property of a spouse to another. However, separate property must be included in the settlement agreement. In case, any of the separate property claims are to be tried in the court, convincing and clear evidence is needed to claim the separate property.

Community property is the property acquired by any spouse during the tenure of the marriage and is different from separate property. All community property should be included in the settlement agreement. In a few cases, a client may be entitled to claim reimbursement on the basis of economic contribution.

The courts let each spouse keep their separate properties and divide the community property, normally in a 50-50 ratio. The court has the jurisdiction to decide upon the settlement if the parties do not agree on a specific written settlement agreement. The court may take into account various contributing factors while deciding this. It is normally presumed that the courts settle community property 50-50, but it may differ.