What is the difference between common law and community property states?

What is the difference between common law and community property states?

In common law property states, each spouse is a separate entity. They can own property independent of any interest in the other spouse. In community property states, because the property can’t be separately owned, the property is exposed to the liabilities and creditors of both spouses.

What happens to community property when you move to a common law state?

In common law states, property acquired during a marriage is not automatically owned by both spouses. If a couple moves from a community property state to a common law state, each spouse retains a one-half interest in property accumulated during marriage while they lived in the community property state.

Should a husband and wife have separate trusts?

There many reasons why you and your spouse may want separate trusts. With a separate trust for each spouse and marital assets allocated and funded into each of your trusts, you can insulate marital assets from the creditors of the other spouse.