What is Transmutation of Property in Divorce?
Nobody said divorce is easy. But while many people immediately think of the emotional toll a divorce can take, the reality is that the division of property is often where a lot of the lasting, legal complications lie. Unfortunately, even though how your marital estate will be divided will have a huge impact on you, often the legal terms surrounding concepts are completely foreign.
One term/concept that can be bewildering to many individuals facing the possibility of divorce is that of property “transmutation.” Even though this is likely an unfamiliar term, it is important that you do not gloss over it if you encounter it in your divorce proceedings. This article is meant to provide an initial introduction to the concept of property transmutation and why it is so important to understand in your own case. For specific advice in your own case and considering the details of your own situation, contact an experienced attorney, like the team at the Law Office of Bradley S. Sandler.
Division of Property
First, what is transmutation of property? And why is it important to understand? In a nutshell, transmutation of property can drastically impact what you will be entitled to in a property division split in your divorce. And how you treat property, even during the course of the marriage, can impact whether property is affected.
As you probably already know, California is a community property state. Any property owned by a divorcing couple that does not qualify as “separate” property is split evenly between the married parties in the event of a divorce (barring a valid prenuptial or postnuptial agreement, of course).
Because of the way courts will divide property, determining the character of a given property is important, properly labeling whether something is community property or separate property. Generally speaking, community property is any marital asset or debt acquired during the course of the marriage. Separate property would be assets or debts acquired before marriage, after the date of separation, or by gift or inheritance (among a few others).
However, it is possible for separate property to become so enmeshed in the community property that it is not possible for the courts to clearly separate the two. In these instances, it is possible for property that had been separate to “transmute” or change its character. Effectively changing separate property into community property that is subject to division, or changing marital property into non-divisible separate property.
Transmutation
For example, let’s say that prior to marriage, Spouse A bought a mountain cabin. After marriage, Spouse A and Spouse B paid for the cabin’s mortgage via a joint checking account that both spouses pay into.
While the vacation home was clearly a separate asset acquired prior to the marriage, Spouse B has likely gained a community ownership stake in the property. This is because community funds were used to keep the property. So, the community now likely holds some amount of interest in that property.
The nature and character of a property are vitally important when looking at division of property issues. For more clear guidance on precisely what to expect and how these legal concepts may come into play in your own circumstances, contact the team at the Law Office of Bradley S. Sandler.
Law Office of Bradley S. Sandler
It is never too early (or too late) to begin taking the right steps toward protecting yourself and your loved ones when thinking of a property division issue. For experienced help in every aspect of California divorce and property division law, contact the esteemed professionals at the Law Office of Bradley S. Sandler.
Sources
https://law.justia.com/codes/california/code-fam/division-4/part-2/chapter-5/section-850/