Which term describes property owned by married couples with each spouse owning a 50 percent interest in the property?

• A. Prenuptial agreement
• B. Basis
• C. Capital gains taxes
• D. Community property

Answer: (D)

Community property describes property owned by married couples where each spouse has an undivided 50 percent interest. This means assets acquired during the marriage are owned jointly, with each spouse holding half, and the property is typically divided accordingly at divorce or passed to the surviving spouse on death in many community-property systems. A prenuptial agreement is a pre-marriage contract about property rights, not the default ownership form. Basis is a tax concept related to the original cost of property for calculating gains, and capital gains taxes are the taxes on profit from selling property. The description in the question points to community property.