In the absence of a premarital agreement, most property acquired by either spouse during the marriage is community property. Community property is owned equally by the husband and wife and is divided substantially equally in the divorce. Even if one spouse has worked harder and accumulated more than the other spouse during the marriage, the assets are still divided substantially equally in the divorce. For example, if Husband works 20 years during the marriage and accumulates $400,000 in his company 401k plan, and Wife is a stay-at-home mom and earns nothing during the marriage, Wife is still entitled to $200,000 from Husband’s 401k at the time of the divorce. Community property does not include inheritances and gifts received by one party if those assets are kept separate after they are received.
