What is transmutation of property?

Transmutation refers to a legal doctrine which allows for separate property to be changed into community property, or vice versa. Community property generally refers to any property or assets that a couple obtains during their marriage, and owns together.

What does transmutation mean in divorce?

Transmutation means to change form, and in the context of California, Orange County divorce cases, transmutation means that property has changed form or character in one of the following ways: Property changed from community property to separate property. Property changed from separate property to community property; …

Is a transmutation a gift?

It is worth mentioning that any assets transferred through a transmutation agreement count as a gift, with the appropriate gift tax implications. There is no functional tax difference between writing a deed transferring real estate to your spouse and transferring it through a transmutation agreement.

Is a quitclaim deed a transmutation in California?

In summary, an interspousal transfer grant deed or quitclaim deed between spouses is normally a valid transmutation of property.

What is transmutation in family law?

In family law, a “transmutation” is where spouses have changed the charcter and nature of a community or separate property, real or personal from separate property to community property or from community property to the separate property of one of the spouses.

What must be shown to prove a valid and enforceable Transmutation?

Basically, a transmutation agreement must be a signed, written agreement that clearly states the intention of both spouses to transfer the status of property ownership. A valid transmutation agreement should clearly express that the spouses are aware of the effect of the change.

Can transmutation reversed?

In sum, both parties must intend marital property to transmute into separate property in order for there to be a reverse transmutation by gift. The burden of proof is on the party seeking to prove the transmutation from marital to separate property.

How do I get a transmutation agreement?

Requirements for Creating a Binding Transmutation Agreement in California

1. Be in writing;
2. Include an express declaration of the intention to transfer the status of property ownership; and.
3. Signed by the spouse whose interest in the property is being reduced or removed.

Can a deed be a sufficient transmutation of property?

While these deeds do appear to be a sufficient transmutation of property, that transmutation can be overcome by a showing of undue influence. Consequently, the facts and circumstances surrounding the signing of such deed should be examined in detail.

What is a transmutation of real or personal property?

This is known as a “transmutation.” Under Family Code section 852, a valid transmutation of real or personal property is required to be in writing by express declaration of the spouse whose interest is going to be adversely affected.

What is Transmutation in a California divorce?

Under California’s Family Code section 850, transmutation is “an interspousal transaction by which the character of personal or real property is changed in one of three ways: from separate to community, from community to separate, and from the separate property of one spouse to the separate property of the other spouse.”

What happens when a property is transmuted in a divorce?

When a property is transmuted and it ends up that one spouse is seriously advantaged over the other spouse, invalidating the transaction is a possibility. That means it is up to the spouse who now legally owns the property and their attorney to prove no undue influence occurred.