My wife and I married 3 years ago in Europe. She is American and I am European but I do have a green card.
I'm not sure if any of this background info is the slightest bit relevant. Where did you live when you got married and where have you lived since you got married?
When we got married I owned a house.
Located where? What did you do with the money you received when you sold it?
I also received financial gifts from my father in Europe.
This is meaningless without knowing when you received these gifts and what you did with the $$.
My wife owns one house that she had owned since before we got married
I own a 2nd house but it was filed as a sole and separate property when I bought it meaning that she forfeit all rights on that house I believe.
Again...located where? And what did you mean when you wrote, "it was filed"? What was filed? Are you saying that the deed by which you took title identifies the property as your "sole and separate property"? If so, that has no bearing on your wife's rights (or lack thereof). Only a writing signed by your wife can serve to abrogate her rights. Do you have such a writing?
If my first house sold before the wedding (that was when the purchase agreement was signed but the check from the title company after we had gotten married) will the money that I received be considered communal property by the courts? Likewise, will a gift from my father to me be considered communal property and will I have to share that in our divorce?
The term is "community property" (not "communal"). Assuming that Washington law applies, both "pots" of money started out as your separate property. Whether they remained as such depends on facts not included in your post (i.e., what you did with the money after you received it).
During our marriage we had a child and I spent all my income on our life expenses. She did not work but stayed at home with the child.
I suggest strongly that you abandon the postiion that staying home to take care of an infant/toddler constitutes "not work[ing]."
We have no cash left but each of us has a house with full/some equity. No debt exists.
I'm guessing then that what you really want to know is how the courts will divide your assets (i.e., the two houses) in the event you divorce and assuming the two of you cannot agree on how to divde them (you didn't say whether a divorce is actually in process or being seriously contemplated). Correct? If so, it's not apparent from the information in your post. You'll need to answer my questions above or consult with a local divorce attorney.
We are in Washington state.
So...why does your profile refer to CA?