Three other statesAlaska, South Dakota and Tennesseeare "opt in" states for community property.³Whether a state has a common law or community property system, the division of assets in a divorce also may bedetermined by a prenuptial agreement or a postnuptial agreementif the divorcing couple has one.

The distinction between common law and community property law is important not only in cases of divorce but also in ongoing wealth management. Forhigh-net-worth individualsin particular, a wealth manager might go to great lengths to determine the rightful ownership of certain assets, in either common or community property situations. Wealth managers also may be involved in the creation of wills andtrustsand overseeing the passing of wealth from one generation to the next, all of which may be affected by whether the assets in question are governed by common or community property law.

Common law property rules can apply not only to tangible assets, such as cars, real estate, and fine art, but also to intangible assets, such as patents and trademarks.

In addition to the example of vehicles, other physical assets that could be divided based on common law property rules include real estate (such as first and second homes, rental properties, land, and construction not used for day-to-day living, such as docks and boathouses). Also on the list are valuables such as art, antiques, and collectibles.

Physical assets are only one type of wealth, of course. There are alsointangible assets, which include such things as brand names, patents, trademarks, leases, computer programs, customer lists, franchise agreements, and so forth. Intangible assets also are subject to common law or community property rules, although they tend to be associated more with companies and less with individuals.