Estate Planning Lawyers for Santa Clarita

Community Property Agreements

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A husband and wife need to be very careful how they characterize their property. In most cases, both spouses agree everything they own is community property. However, in some cases, that may not be the best idea.

If you are married, assets earned by either you or your spouse while married and while a resident of California are community property. On the other hand, a married individual may own separate property as a result of assets owned prior to marriage or received by gift or inheritance during marriage. There are significant tax considerations which need to be addressed in the estate planning process with respect to both community property and separate property. Also, a spouse with separate property may want to make sure those assets end up in the right hands - i.e., children from a previous relationship, siblings, etc.

There are also significant property interests to consider. Separate property can be “transmuted” (that is, changed) to community property by a written agreement signed by both spouses and drafted in conformity with California law.