Property acquired by a married couple while domiciled outside of California, which would have been classified as community property had it been acquired while residing in California, is treated as separate property during the marriage. Upon divorce or death, however, this property, termed quasi-community property, is subject to division or inheritance in much the same way as community property. For instance, if a couple moves to California after accumulating assets in another state, a house purchased in that other state, solely in one spouse’s name, would be considered quasi-community property.
This classification offers significant protection to non-acquiring spouses, ensuring a fair and equitable division of assets acquired during the marriage, regardless of where the couple lived. It prevents one spouse from claiming all assets as separate property simply because they were acquired outside of California. This concept reflects California’s strong public policy favoring equal division of marital assets and protects the financial interests of both spouses upon dissolution of marriage or death. Its historical development stems from a recognition that migrating couples should receive the same property rights protections afforded to long-term California residents.