In California, separate property is defined as anything owned by a spouse before marriage, or received during marriage as a gift or inheritance. This contrasts with community property, which generally encompasses assets acquired during the marriage. For example, if one spouse inherits a house during the marriage, it remains their separate property, even if the other spouse contributes to mortgage payments or property taxes. These contributions might create a right to reimbursement, but they do not change the fundamental character of the inherited asset.
The distinction between separate and community property is crucial in divorce proceedings, as only community property is subject to equal division. Clearly defining the character of assets protects individual rights and ensures fair distribution upon marital dissolution. Historically, California’s community property system aimed to recognize both spouses’ contributions to the marital partnership. However, preserving the separate property status of inheritances acknowledges that these assets come from outside the marriage and represent a distinct form of ownership.