October 5, 2011 By Paul Wallin

I am married and my spouse and I want to change some of our community property to my separate property. Is it possible for me to change the characterization of our community property to my separate property?

We get asked this question from time to time and the answer is yes. The Family Code allows for this under what is often referred to as a transmutation agreement.
Under Family code § 850, married persons may by agreement or transfer, with or without consideration, do any of the following:
(a) Transmute community property to separate property of either spouse; or
(b) Transmute separate property of either spouse to community property; or
(c) Transmute separate property of one spouse to separate property of the other
spouse.
However, the Family Code is very clear on how these agreements must be entered into. Under Family Code § 852:
(a) A transmutation of real or personal property is not valid unless made in writing by an express declaration that is made, joined in, consented to, or accepted by the spouse whose interest in the property is adversely affected; and
(b) A transmutation of real property is not effective as to third parties without notice thereof unless recorded; and
(c) The rules governing transmutation agreements do not apply to gifts between spouses of clothing, wearing apparel, jewelry, or other tangible articles of a personal nature that are used solely or principally by the spouse to whom the gifts are made and that are not substantial in value taking into account the circumstances of the marriage; and
(d) The rules governing transmutation agreements do not affect the laws governing characterization of property in which separate property and community property are commingled or otherwise combined.
Lastly, under Family Code § 851, transmutation agreements are subject to the laws governing fraudulent transfers.

We hope that the information in this blog gives you some helpful insight regarding transmutation agreements. If you or a loved one needs assistance with this or any type of family law matter, call Wallin and Klarich today. Wallin and Klarich has a team of highly skilled, aggressive Southern California family law attorneys ready to take your call 7 days week, 24 hours a day! Wallin and Klarich has been in the business of helping people with their family law matters for over 30 years and we would like to help you with yours! A qualified, experienced attorney from the firm will be able to evaluate your case when you call.

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