Community property is a marital-property regime in certain states where most assets and income acquired during marriage are owned equally by both spouses, regardless of whose name is on title or who earned the income. Separate property typically includes assets owned before marriage or received individually by gift or inheritance. Community property rules affect ownership, control, and disposition of assets in divorce and at death, influencing how life insurance, annuities, and beneficiary designations should be structured. Spousal consent requirements and elective-share rights may differ from common-law states, requiring careful coordination with local law.

Advisors working in community property states consider how marital property rules impact beneficiary designations, policy ownership, and estate planning strategies. They often recommend obtaining spousal consents when naming nonspouse beneficiaries for community assets and coordinating with attorneys to draft wills and trusts that respect community rights. Underwriters may request spousal signatures on applications involving significant community assets. Understanding community property helps advisors avoid unintended disinheritance, conflicts among heirs, and legal challenges to insurance and retirement-account beneficiary choices.