Family Code § 852 Must Be Satisfied Before Joint Title Transmutation Presumption Of Family Code § 2581 Applies.

In their divorce, the wife contended there was a community property interest in a partnership which was owned by the husband for years prior to the marriage for which the partnership agreement was modified during the marriage to state the husband and wife were both owners. In creating a joint title presumption, Family Code section 2581 states property acquired jointly during the marriage is community property. Family Code section 852 states a transmutation of property is not valid unless made in writing by an express declaration. The Court of Appeal held:  “We hold that when a spouse places separate property in joint title form, the transmutation requirements of section 852 must be satisfied before the joint title presumption of [section] 2581 applies. The documents in this case do not contain an express transmutation of husband’s separate property interest in the partnership, and therefore, it remained husband’s separate property.” (In re Marriage of Lafkas (Cal. App. Second, Div. 5; June 16, 2015) 237 Cal.App.4th 921, [188 Cal.Rptr.3d 484].)