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.

Alabama 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 equitably as determined by the court. In community property states, property acquired during marriage is owned jointly by both spouses and is divided equally upon divorce. However, since Alabama 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. In Alabama, spouses may enter into agreements regarding the division of their property, but these agreements are subject to equitable distribution principles rather than community property rules. Debts incurred during the marriage are typically considered joint obligations, but the court has discretion to assign debts to one party or the other based on a variety of factors. It's important for individuals in Alabama to consult with an attorney to understand how marital property and debts will be treated in the event of a divorce.