You Can Decide to Change Ownership from Separate to Community in California

... and vice-versa. In California probate law, whether the decedent's property is owned separately or in community is crucial, and the type of ownership has many important consequences.

We have already described in detail what property qualifies as separate, what qualifies as community property, and how assets in each category are to be distributed.

Another article dealt with the problem of the changing character of property over time, and when "comingling" makes it difficult to trace the proportion of a property that remains separate.

Transmutation
California spouses and domestic partners can deliberately change the character of certain assets by mutual agreement. Such a move is called "transmutation."

Up until the end of 1984, property could be transmuted from separate ownership to community or vice-versa by an informal oral accord between the spouses or partners. Since then, the agreement between the parties must be described in writing.

Your intention is what counts
If the agreement to change the ownership of property - say from community to separate - does not mention the appropriate legal terminology, the court will look at the intention of the spouses or partners to decide if the "transmutation" agreement is valid.

Here is one example of property that may be transmuted from separate to community: a single man owning a house gets married. Marriage doesn't change the character of the ownership of the house, which remains his alone. After a few years, if he decides to share its ownership with his wife, he can do it through a transmutation agreement mentioning that the house's ownership is now held in community property with his wife. Of course, there is another way to accomplish this. The owner of the house can also make a gift to his wife, changing the deed to put the house in both their names.

Talk to San Diego probate attorney Scott Grossman about your situation and any questions you might have. Call us at (951) 683-3704 or (866) 840-0000 for your FREE 30-minute telephone consultation. Also, order our FREE lawyer book The Insider's Guide to California Probate and Trust Administration.

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