Community Property vs. Equitable Distribution

Last reviewed: March 2026

How your state divides marital property is one of the most important factors in any divorce settlement. The United States uses two main systems: community property (9 states) and equitable distribution (41 states plus D.C.). Understanding which system applies to you is essential for setting realistic expectations about your settlement.

What is community property?

In community property states, most assets and debts acquired during the marriage are considered jointly owned by both spouses, regardless of which spouse earned the income or whose name is on the title. Upon divorce, community property is generally divided equally (50/50).

Separate property — assets owned before the marriage, inheritances, and gifts to one spouse — is generally not divided. However, if separate property is commingled with community property (for example, depositing an inheritance into a joint account), it can lose its separate character.

What is equitable distribution?

In equitable distribution states, the court divides marital property in a manner it considers fair and equitable, which is not necessarily equal. Courts typically consider factors including:

• Each spouse's income and earning capacity
• Length of the marriage
• Contributions to the marriage (including homemaking)
• Standard of living during the marriage
• Age, health, and financial condition of each spouse
• Tax consequences of the proposed division

In practice, many equitable distribution courts still divide property close to 50/50, but the court has discretion to deviate when circumstances warrant it.

Key differences

Community property states (9)

Equitable distribution states (41 + D.C.)