We purchased rental house Cupertino 2003 in which we added our son's name to the title, who was essentially handling

Question

it as his own in tax papers. My son married in 2015 and we refinanced the loan in 2021, at which time his wife's name got added to the title. Now, he is undergoing divorce and his wife claims the property is tranmuted. Is this possible the property got transmuted during refinance? Can he dispute her claim as the intent was only to refinance and her name got added per requirements of the lender?

James L. Arrasmith · Answer

When you refinanced the property in 2021 and added your son’s wife to the title, the primary intent was to meet the lender’s requirements. Typically, adding a spouse to the title for refinancing purposes doesn’t automatically change the ownership structure beyond what was initially intended. However, in California, any change in title between spouses can be considered a transmutation of property, which means it could be treated as marital property. 
 
Your son can dispute his wife’s claim by presenting evidence that the addition of her name was solely for refinancing purposes and that there was no intent to change the ownership arrangement permanently. Documentation such as loan agreements, refinancing paperwork, and any communications at the time of refinancing can support his position. It’s important to demonstrate that the property was not meant to be shared as marital property but was maintained as it was before the refinance. 
 
Consulting with a family law attorney can provide specific guidance tailored to your situation. They can help gather the necessary evidence and navigate the legal process to protect your son’s interests. Ensuring that all intentions and agreements are clearly documented will strengthen his case against the claim of transmutation.

Q: We purchased rental house Cupertino 2003 in which we added our son's name to the title, who was essentially handling