Transmutation Agreements

A Transmutation Agreement is a written agreement between married persons that changes the character of property owned by one of the parties, or the parties jointly, during marriage. For example, if one of the parties owns a home before marriage and wants to put it both parties names after marriage, a written Transmutation Agreement assures that the final result is what the parties intended. For example, does the transfer only convey future appreciation of the property (probable result without agreement otherwise), or was the intent to transfer a present equitable interest. Surprisingly, in California, what is commonly thought to be a gift between spouses, like a car, or transfers of an interest in corporate stock, may not if fact transfer any equitable interest without a written Transmutation Agreement that complies with complex rules imposed by statute and California court cases. Because the law in this area is complex and difficult, a Transmutation Agreement should be tailored to each party’s particular circumstances and prepared by a Certified Expert in California Family Law.