700-1620: Marital Property, Debts, and Agreements in California
California law provides a detailed framework for managing property, debts, and agreements within a marriage. Spouses are bound not only by emotional commitments but also by fiduciary and financial duties that govern how they own, control, and divide assets and liabilities.
700 to 721: Spousal Relationship and Fiduciary Duties
Spouses owe each other mutual respect, fidelity, and support. Each spouse can engage in transactions as if they were unmarried. However, they are held to fiduciary standards in dealings with each other. These duties include full disclosure, access to financial records, and a prohibition against taking unfair advantage of one another.
“This confidential relationship imposes a duty of the highest good faith and fair dealing on each spouse, and neither shall take any unfair advantage of the other.”
— Family Code §721(b)
750 to 783: Property Rights During Marriage
Spouses may own property as joint tenants, tenants in common, community property, or community property with a right of survivorship. Community property acquired during marriage belongs equally to both spouses. Separate property includes property owned before marriage, gifts, inheritances, and earnings after separation.
If a spouse is injured during marriage, damages may be community or separate property depending on when and how the injury occurred. Liability for injuries between spouses is limited, and special rules apply in cases involving personal injury claims and wrongful acts.
802 to 803: Presumptions About Property
California law presumes that property acquired during marriage is community property, but exceptions exist. Property acquired by a married woman before 1975 under certain instruments may be presumed to be her separate property.
850 to 853: Transmutation of Property
Spouses can change the character of property through a transmutation, which must be in writing and accepted by the adversely affected spouse. Casual gifts of personal items do not require formal documentation, but all other property character changes must meet specific legal standards.
900 to 1000: Debt and Liability Rules
The community estate is generally liable for debts incurred by either spouse during the marriage, but protections exist for separate property and post-separation earnings. Community property is also liable for quasi-community debts. Certain obligations, like child support from prior relationships, are treated as pre-marriage debts.
Liability for personal injury damages is guided by whether the action benefitted the community or was undertaken independently. Community assets may be used only after a tortfeasor spouse’s separate assets are exhausted.
1500 to 1620: Marital and Premarital Agreements
Spouses can modify their property rights through premarital and marital agreements. These contracts must be in writing and may address property, spousal support, and asset distribution. The Uniform Premarital Agreement Act (UPAA) governs these agreements and imposes strict requirements, especially for waiving spousal support.
A premarital agreement is not enforceable if it was not executed voluntarily or is found to be unconscionable. Representation by independent counsel and full financial disclosure are key factors in determining enforceability.
“A premarital agreement shall be in writing and signed by both parties. It is enforceable without consideration.”
— Family Code §1611
Conclusion
California’s Family Code provides comprehensive rules to ensure fairness and transparency in managing marital property, debts, and agreements. Spouses are not just partners in life but also in law, bound by obligations to share, protect, and respect each other’s rights. Whether preparing for marriage or navigating its legal realities, understanding these provisions is essential for making informed decisions and protecting one’s interests.