Haha, I bet the lawyers who wrote this question are having a field day watching us all struggle! As for the answer, I'm going with C. Property inherited during the marriage is the separate property of the spouse who inherited it.
I'm pretty sure the answer is D. Income earned by one spouse becomes community property. That's the statement that's incorrect in a community-property state.
I think the correct answer is B. Community property loses its identity when a community-property couple moves to a common-law state. That's the one that doesn't seem right to me.
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