is one of nine community property states in the US. Each of these states has decided that in the absence of another binding agreement, all property acquired during a marriage is to be split 50/50 during a divorce.

Divorce is nothing short of a headache, including when it comes to deciding who gets what stuff. In fact, divorces have become so contentious in terms of property distributions that a handful of states have decided to intervene, decreeing that all property is to be split 50/50 in most cases.

If you’re living in a community property state and don’t know what this means for you, you’ve come to the right place. Here, the

home

and

car insurance

super app

Jerry

breaks down what a community property state is and some important exceptions to the law.

Let Jerry find your price in only 45 seconds

No spam · No long forms · No fees

Find insurance savings

What is a community property state?

A community property state abides by community property law, which stipulates that all material possessions and nonphysical assets gained by either member of the couple during a marriage are to be split evenly in the event of a divorce.

All other states run common law property systems, in which whoever bought the item can claim it during a divorce. If you live in the majority of US states, if your name is on the receipt, it’s yours when you split.

However, there are nine community property states, including New Mexico and:

Arizona

California

Idaho

Louisiana

Nevada

Texas

Washington

Wisconsin

Common law states aim to simplify divorce proceedings by dividing up possessions equally.

Separate property vs. community property

Not every single item you bring into your house while you’re married is considered community property. Separate property that remains in the ownership of one spouse includes:

Anything gifted to that spouse alone

Anything received via inheritance, trust fund, or will by one spouse alone

Anything designated by a deed or court as belonging to one spouse alone

Anything owned prior to the marriage by either spouse

Anything acquired during a legal separation by either spouse

Any profits gained off of something owned prior to the marriage (e.g., rental payments from a rental house purchased by one spouse when they were still single)

What is considered community property in New Mexico?

Aside from the exceptions listed above, you can assume all property and assets gained by either spouse while married and residing in New Mexico is community property.

This includes income and debt. So if one spouse incurs debt while married and then the couple divorces, either member could be called upon to repay the outstanding debt balance (excluding debt from gambling or committing a tort).

If you purchased your car while you were both married but living in, say, Michigan, your spouse won’t be able to obtain it during a divorce in New Mexico.

MORE:

New Mexico electric vehicle incentives

How is community property divided in New Mexico?

You have a couple of options to divide up your property in a community property state: come to an agreement before or during the divorce, or have a judge allocate your items for you.

Note that prenuptial or other agreements made before or during the marriage will still stand in a community property state. So if you declared in writing five years ago that you would get the expensive TV you bought while married in New Mexico (and your wife doesn’t contest), you’ll get it in a divorce.

If you leave things in a judge’s hands, they’ll take care to distribute items such that each spouse ends up with the same net value of assets and that certain assets are logically placed depending on each spouse’s child rearing, financial, and other situations.

Key Takeaway Both physical and intangible property and assets will be split such that each spouse has the same net value of assets in a community property state.

MORE:

Best road trips in New Mexico

Find affordable car and home insurance

Divorce can be psychologically difficult at best and financially disastrous at worst. Finding the right insurance policy doesn’t have to be either, thanks to

Jerry

Think of Jerry as the insurance broker that lives in your pocket—but you don’t have to buy tiny office furniture; Jerry is an app! (A top-rated one, at that.) Jerry partners with over 50 top insurance providers so you can rest assured you’ll never miss out on the best deals.

Just complete a 45-second sign-up, and you’ll have access to competitive quotes. Choose the rate you like best and Jerry will help handle the rest, including filling out the long forms to sign you up for your new policy.

Jerry can even help you

bundle your home and auto insurance

for next-level savings on both!

“I was paying roughly $180 a month for insurance, but
Jerry
hooked me up with an Allstate full coverage plan for only $89! I’m so glad I trusted Jerry to find me a better plan.” —David A.

RECOMMENDED

Thousands of customers saved on average $887/year on their car insurance with Jerry

This app is great, but the customer service is even better! Not to mention convenient! My husband and I got the lowest rate (much lower than the rates I was finding online through my own searches), quickly, and pretty much all through text message! Thank you so much for a hassle free experience👍

Gabriella R.

Find insurance savings

4.7/5 Rating on App Store

FAQ

Does adultery affect proceedings in a community property state?

In general, no. Your assets will be divided evenly in a community property state regardless of the reason for the divorce and whether the divorce is contested or uncontested.

Save an average of 18% by bundling your home and auto insurance

Bundle your home and auto insurance with Jerry and save!

Try Jerry