Reference guide
Ways to Hold Title in California
A comparison of common forms of holding title. Provided for general reference only — consult your attorney or tax advisor before making a decision.
| Community Property | Joint Tenancy | Community Property with Right of Survivorship | Tenancy in Common | Tenancy in Partnership | |
|---|---|---|---|---|---|
| Parties | Only husband and wife or domestic partners | Two or more persons (may be spouses or domestic partners) | Husband and wife or domestic partners | Two or more persons (may be spouses or domestic partners) | Only partners (any number) |
| Division | Ownership and managerial interest are equal except control of business is solely with managing spouse/partner | Ownership interest must be equal | Ownership interest is equal | Ownership can be divided into any number of interests, equal or unequal | Ownership interest is in relation to interest in partnership |
| Title | Title is in the "community". Each interest is separate but management is unified | There is only one title to the whole property | Title is in the "community". Each interest is separate | Each co-owner has a separate legal title to his undivided interest | Title is in the "partnership" |
| Possession | Both co-owners have equal management and control | Equal right of possession | Both co-owners have equal possession | Equal right of possession | Equal right of possession but only for partnership purposes |
| Conveyance | Personal property (except "necessaries") may be conveyed for valuable consideration without consent of other spouse/partner; real property requires written consent of other spouse/partner, and separate interest cannot be conveyed except upon death. | Conveyance by one co-owner without the others breaks his joint tenancy | Real property requires written consent of other spouse/partner, and separate interest cannot be conveyed except upon death | Each co-owner's interest may be conveyed separately by its owner | Any authorized partner may convey whole partnership property. No partner may sell his interest in the partnership without consent of his copartners |
| Purchaser's Status | Purchaser can only acquire whole title of community; cannot acquire a part of it | Purchaser will become a tenant in common with the other co-owners in the property | Purchaser will become a tenant in common with the other co-owner in the property | Purchaser can only acquire the whole title | |
| Death | On co-owner's death, 1/2 belongs to survivor in severalty; 1/2 goes by will to decedent's devisees or by succession to survivor | On co-owner's death, his interest ends and cannot be disposed of by will. Survivor owns the property by survivorship | On co-owner's death the entire tenancy remains to the survivor. This right of survivorship is one of the primary incidents of community property with right of survivorship. | On co-owner's death his interest passes by will to his devisees or his heirs. No survivorship rights | On partner's death, his partnership interest passes to the surviving partner pending liquidation of the partnership. Share of deceased partner then goes to his estate |
| Successor's Status | If passing by will, tenancy in common between devisee and survivor results | Last survivor owns property in severalty | If passing by will, tenancy in common between devisee and survivor results | Devisees or heirs become tenants in common | Heirs or devisees have rights in partnership interest but not in the specific property |
| Creditor's Rights | Property of community is liable for contracts of either spouse/partner which are made after marriage and prior to or after January 1, 1975. Co-owner's interest cannot be sold separately; whole property may be sold on execution to satisfy creditor | Co-owner's interest may be sold on execution sale to satisfy creditor. Joint tenancy is broken; creditor becomes tenant in common | Property of community is liable for contracts of either spouse/partner which are made after marriage and prior to or after January 1, 1975. Co-owner's interest cannot be sold separately; whole property may be sold on execution to satisfy creditor | Co-owner's interest may be sold on execution sale to satisfy his creditor. Creditor becomes tenant in common | Partner's interest cannot be seized or sold separately by his personal creditor, but his share of profits may be obtained by a personal creditor. Whole property may be sold on execution sale to satisfy partnership creditor |
| Presumption | Strong presumption that property acquired by husband and wife/domestic partners is community property | Must be expressly stated. Not favored | Favored in doubtful cases except husband and wife/domestic partners case | Arises only by virtue of partnership statute in property placed in partnership |
Source: Jean Allen Escrow Inc. — general reference only. Not legal or tax advice.