Marriage of Valli resolves community property v form of title dispute
This month, in Marriage of Valli, the California Supreme Court decided the issue of whether or not simply changing the title of how property is held is enough to defeat the family law presumption that property acquired during the marriage is community property. The court held that if community funds were used to buy property in which only one of the parties were on title; the acquired property remained community property and had to be divide in half upon divorce. The only way that community property could become the separate property of one of the spouses is if there is a formal written transmutation agreement between the spouses.