TRANSMUTATIONS

Question 1

What is Transmutation?

Answer 1

A transmutation is an agreement between spouses made during marriage to alter the ownership characterization of property.

Question 2

What is the difference between the transmutations after 1/1985 and before 1/1985?

Answer 2

Writing required (since 1/1/1985): A valid transmutation of real or personal property requires a writing, clearly describing the change in ownership, and consent of the adversely affected spouse.

Before 1/1/1985 writing not required: Transmutations could be oral, written, or inferred from the conduct of the parties.

Question 3

What is the exception for gifts between spouses of insubstantial value?

Answer 3

Where a spouse intends to give the other spouse a personal gift of relatively insubstantial value, taking into account the marital assets, the property will be the SP of the gifted spouse. No writing is required.

Question 4

Are there to exceptions to allow extrinsic evidence to prove transmutations ?

Answer 4

There are no exceptions to the writing requirement allowing for extrinsic evidence to prove the transmutation. A statement in a will is not admissible to prove the transmutation. Detrimental reliance will not be taken into account.