Legal Question in Family Law in California

Sir/Madam,

Due to the shutdown of my businesses, I signed a Spousal Transfer Grant Deed in order to protect our Real Estate properties. Our intent was solely to protect our RE properties, making wife solely on Title.

If we "divorce", are these properties still considered Community properties, since they were purchased during our marriage, even if my wife is only on Title?


Asked on 12/17/11, 2:45 am

1 Answer from Attorneys

Chances are very good you will have a fight on your hands. The burden of proof will be on you to establish that the change in record title was not intended to transmute community property into her separate property. On top of that, your entire scheme will be in vain if your business creditors want to get the real estate. First off, your business debts incurred during the marriage are community debts. Therefore your wife is just as liable as you are for them. Second, even if they were your separate property debts, by transferring them for no payment if your creditors obtain judgments against you that you cannot pay, they can sue you and her for fraudulent transfer and get the properties that way. You really need to get some in-person legal and financial planning for your situation, before your do-it-yourself schemes become real problems.

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Answered on 12/17/11, 8:41 am


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