Last week we discussed the idea of being and staying prepared when handling a divorce. One of the best ways to be prepared is to be educated. Moving forward, we will intermittently break down some frequently used terms in divorce that you may not hear in everyday conversation.
Transmutation is the legal analysis of property transfers. Typically this relates to the conversion of property from one character to another, Community Property to Separate Property or the other way around. The court must analyze, trace and determine if there was a transfer and what was transferred. Quit Claim transfer deeds on real estate title are among the most common transmutations and can lead to unintended consequences.
Why is transmutation important?
Parties often make decisions (e.g. buying a house using funds from only one party) without understanding the potential impact. How the parties transfer the property could benefit one and harm the other if not handled properly.
Decisions such as these could play a significant role in your post-divorce future. Hiring an experienced CDFA will ensure a more secure, comfortable future for YOU. Make sure you sit down with us at PDM before finalizing your settlement agreement.