Parties Actions to Change Character

Question 1

Premarital Agreement

Answer 1

Couples who wish to marry but prefer to avoid CA’s CP system may do so by entering into a premarital agreement specifying their own property distribution system.

To be valid, a premarital agreement must be in writing and signed by both parties; it is enforceable without consideration

Question 2

What must one show to deem that a premarital agreement was not valid?

Answer 2

It shall be deemed that a PMA was not executed voluntarily unless the party against whom enforcement is sought (1) had fully independent legal counsel or waived counsel (2) had at least 7 days to review the PMA and (3) it was fully advised in writing of all the rights and obligations to attach to the PMA.

Question 3

What is a transmutation?

Answer 3

A transmutation is an agreement made during the marriage to alter the character of an asset. No consideration is required

Question 4

What is the transmutation rule before January 1 1985?

Answer 4

Oral agreements to transmute property as well as donative acts inferred from one or both parties’ behavior to transmute property were allowed in California.

Question 5

What was the transmutation rule after January 1 1985?

Answer 5

A transmutation agreement must be in writing by an express declaration of the spouse whose interest is adversely affected.

Exception: (cumulative)
- it is a gift between the spouses
- the gift is a tangible article of personal nature which is used solely or principally by the receiving spouse.
- AND the gift is not of substantial value.