The property which remains community property includes:
- the proceeds from the sale of community property; and
- property that is acquired with community property, or with community funds, or with community credit[i].
For example, when the realty is purchased with the husbands’ funds, and there is no evidence that the purchase is made for the partnership, the real estate sold to two husbands operating a business as partners is the community property of the two families, eventhough the property is used in the partnership business[ii].
[i] Warburton v. White, 176 U.S. 484 (U.S. 1900); Woods v. Naimy, 69 F.2d 892 (9th Cir. Wash. 1934)
[ii] Adams v. Blumenshine, 27 N.M. 643 (N.M. 1922)