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Summary of character of property

Community property (CP) Separate property (SP)

Basic Property acquired during marriage Property acquired before, during separation, or
presumptions after dissolution of marriage
Bequest, gift, will, inheritance
Fruit of SP (e.g., rents from SP acquired
before/during marriage)
Property acquired in exchange for SP
Stock options Options that become exercisable (vests) during
marriage
If not exercisable until marriage ends, portion If not exercisable until marriage ends, portion
under “time rule”* – percentage of married time under “time rule” – percentage of time after
between acquiring and vesting marriage and vesting
Business To the extent goodwill is earned during Portion that is not CP
goodwill marriage – see valuation methods § V-c
Education To the extent community has right of Right to reimbursement may be rebutted – see §
reimbursement – see § VII-c VII-c-ii-2
Personal injury Damages recovered for an injury that arises Damages for injury after separation (must
tort v. 3P during marriage reimburse community for any expenses)
Damages after divorce (unless interests of justice
require otherwise)
Personal injury Recovery is always injured spouse’s SP
tort v. spouse
Retirement Portion of benefits earned during marriage Portion of benefits earned after separation
pensions (even if actually received after divorce) –
apportion based on when earned under “time
rule”
Disability pay, To the extent that compensation is intended to To the extent that compensation is intended to
workers’ comp replace marital earnings replace post-separation earnings
Severance pay To the extent pay replaces marital wages To the extent pay replaces post-separation wages
Life insurance – Final premium rule: The estate (CP/SP) that paid the most recent premium owns the policy, or in the
term (covers risk event of the insured’s death, receives the proceeds of policy
of death)
Life insurance – Any cash value of policy (before or after death of insured) is apportioned according to % of premiums
whole (term + paid by each estate (CP/SP)
cash value) Proceeds of policy after death of insured (term portion) received according to final premium rule

* “Time rule” used to apportion: Community and separate interest are respectively based on the period of time corresponding to
marriage starting from when it was earned, and the period of time between filing for divorce and when the earning stops or asset vests.

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