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.

Tennessee 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 is divided in a manner that is deemed fair and equitable by the court. The concept of community property, transmutation agreements, or converting separate property to community property as described does not apply in Tennessee as it would in community property states. Instead, spouses in Tennessee may enter into postnuptial agreements to address the division of their assets and debts. Such agreements must be in writing and are subject to certain legal requirements to be enforceable. Debts incurred by either spouse during the marriage are typically considered marital debts and are divided equitably upon divorce, but the responsibility for these debts can be altered by a legally binding agreement between the spouses, subject to the creditor's consent.