Under the law of some community property states, married persons may agree to convert some or all of their separate property to community property. Such an agreement may be referred to as an agreement to convert separate property to community property or as a transmutation agreement.

The legal character or nature of debts of married persons may also be changed by transmutation in some community property states—changing debts of the parties’ separate estates to debts of the community estate, or debts of the community estate to debts of the separate estates. But an agreement between married persons to change a community debt to the debt of one of the spouses separate estates may not be binding on the creditor—unless the creditor agrees in writing to only look to one spouse for satisfaction of the debt.

In community property states, the laws regarding the availability and scope of transmutation agreements vary from state to state. These laws are usually located in a state’s statutes—often in the family code or domestic relations code.

Minnesota is not a community property state; it is an equitable distribution state. This means that during a divorce, marital property is not automatically split 50/50 but rather divided equitably as determined by the court. Since Minnesota does not follow community property laws, the concept of transmutation agreements to convert separate property to community property, or vice versa, does not apply in the same way as it would in community property states. However, spouses in Minnesota can enter into postnuptial agreements to change the nature of property ownership, which can include stipulations about how property would be treated upon divorce or death. These agreements must be in writing and meet certain legal requirements to be enforceable. As for debts, Minnesota law generally treats debts incurred during the marriage as joint obligations, but the division of debt can be complex and may depend on whose name is on the debt, the purpose of the debt, and other factors. Creditors are not bound by agreements between spouses unless the creditor agrees in writing to the terms.