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Community Property • Transmutations
CPROP#040
Legal Definition
Prior to 1985, spouses could orally agree to transmute their property, and courts inferred the intent to transmute from the parties' behavior.
Plain English Explanation
Back in the old days, married folks could swap around who owns what by just saying so. No fancy lawyers or paperwork needed! If Bob had a nice plot o' land and Amy had a sweet ride, they could trade. "Hey honey, that land looks nicer than this ol' clunker. Let's make a deal!" And then bam! - they'd each own the other one's stuff. The tricky part came when there weren't any witnesses. If no one heard Bob and Amy make their little deal, the law would look at what Bob and Amy actually did afterward. Did Amy start making improvements on the land while Bob drove around town in the sweet ride? Then it didn't matter whether anyone heard them make the swap - the law could tell they meant it by how they acted.
Of course, this casual attitude made things messy when couples split up. Who owned what when there was no record of their backroom deals? And what a slap in the face if your ex denied that silver pocket watch was a wedding gift! So in 1985, the lawmakers said "no more." From then on, the old 'handshake and a wink' routine wouldn't cut it. Married folks had to put it in writing if they wanted to swap property. Takes the romance out of it, I suppose, but at least it's clear who gets the cabin by the lake when it all goes sour.
Of course, this casual attitude made things messy when couples split up. Who owned what when there was no record of their backroom deals? And what a slap in the face if your ex denied that silver pocket watch was a wedding gift! So in 1985, the lawmakers said "no more." From then on, the old 'handshake and a wink' routine wouldn't cut it. Married folks had to put it in writing if they wanted to swap property. Takes the romance out of it, I suppose, but at least it's clear who gets the cabin by the lake when it all goes sour.
Hypothetical
Hypo 1: In 1983, Bob inherits a painting from his grandfather. He tells Amy, "This painting should go in your office; it suits your taste." Amy starts referring to the painting as 'my painting' in conversations. Result: The court might consider Bob's statement and subsequent behavior as an implicit agreement to transmute the painting into Amy's separate property.
Hypo 2: In 1974, Bob and Amy buy a vacation home. While discussing finances, Amy says, "This should be your house. I have no interest in it." However, she contributes to the mortgage payments and participates in decisions regarding the house. Result: A court may interpret Amy's statement and ongoing financial contributions as indicating no actual transmutation occurred, and the property remains community property.
Hypo 2: In 1974, Bob and Amy buy a vacation home. While discussing finances, Amy says, "This should be your house. I have no interest in it." However, she contributes to the mortgage payments and participates in decisions regarding the house. Result: A court may interpret Amy's statement and ongoing financial contributions as indicating no actual transmutation occurred, and the property remains community property.
