As we’ve covered in previous posts, CA is a community property state. What this entails is that during the asset division process of your divorce, the CA family law courts will typically split everything that was accumulated during the marriage between you and the ex. This includes assets as well as debts, and the goal is for the distribution to be equitable for both parties.

Importantly, this process does not apply to separate property, which includes all assets and debts that individuals had accrued before or after the marriage has terminated. This can help offer peace of mind to folks who know that their separate assets are protected, but family circumstances can vary significantly from case to case. In some instances, it’s possible for lines to blur and separate property could blend into community property. 

Today’s post is a look at those scenarios where the courts might regard separate property to actually fall into the community property bucket. This can largely occur via two mechanisms, commingling and transmutation of separate property. 

Commingling Separate Property into Community Property

Commingling separate property occurs when a spouse mixes their separate assets into shared marital property. This includes scenarios such as when they move funds into a joint bank account, when a spouse invests their own money into the other partner’s businesses or assets, or when inheritance money that is fully owned by one person is used within the marriage. It’s important for both parties to be cognizant of how their separate assets interact with shared property in order to avoid any unexpected or unwanted commingling of separate property into community property. 

Transmutation of Separate Property into Community Property

Transmutation is a lot more purposeful and deliberate than commingling separate property. This is where the owner of the separate property consents to mix his or her separate property into community property. Often done in writing, this can include scenarios such as transferring an ownership title from one spouse to another or infusing the marriage funds with income streams that were previously separate.

Protect Yourself and Your Interests with the Help of a CA Attorney

While no divorce is the same, the laws regarding separate and community property are consistent across California. It’s important for you to have a solid understanding of your assets, shared or otherwise, in order to avoid any unexpected or unwanted interactions during the asset division process of your CA divorce. 

The best way to get a good grip on this within the context of your case is to consult with a knowledgeable attorney who can fully assess your situation. At the White Oak Law, we take the time to sit down with every client and get a complete understanding of their legal needs. We then work tirelessly to strategize a legal approach that best fits their expectations and priorities. 

We invite you to call us at the White Oak Law to learn more about how we can help. Call us at 925-271-0999 today to book your appointment at your earliest convenience.