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Community Property • Altering Character of Assets by Agreement
CPROP#032
Legal Definition
No. California allows parties to opt-out of the statutory community property and separate property characterizations by agreement, either as to particular assets or all acquisitions.
Plain English Explanation
In California, married couples can choose not to follow the usual rules about shared property. They can agree to treat some or all of their possessions differently, deciding themselves if these things will be owned together or separately.
Hypothetical
Hypo 1: Amy starts a business after getting married to Bob. They decide together that any earnings from this business will be considered their joint property, despite California's default rule that income from a business started after marriage is community property. Result: Their agreement aligns with California’s default rule, as income from a business started during marriage is community property. If they had decided to make it separate property, a written agreement would be required to alter the default rule.
Hypo 2: Bob buys a car with his earnings from work after marrying Amy, but they agree that the car will be Bob's separate property. Result: Despite California's rule that earnings during marriage are community property, their agreement allows the car to be Bob's separate property.
Hypo 2: Bob buys a car with his earnings from work after marrying Amy, but they agree that the car will be Bob's separate property. Result: Despite California's rule that earnings during marriage are community property, their agreement allows the car to be Bob's separate property.
Related Concepts
Can parties agree to limit child support in a prenuptial agreement?
What are the defenses to enforcement of a prenuptial agreement?
What are the requirements for a prenuptial agreement to be deemed signed voluntarily?
What are the requirements for a proper prenuptial agreement, and what are the exceptions?
What are the two main types of unconscionability claims and who decides on them?
What happens to terms within a prenuptial agreement that are deemed to promote divorce?
