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.

Indiana 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 in a manner that is equitable, or fair, which may not necessarily be equal. Since Indiana does not follow community property laws, the concept of transmutation agreements, where separate property is converted to community property, does not apply in the same way as it would in community property states. In Indiana, spouses may still enter into agreements regarding the division of their property, but these agreements are subject to equitable distribution principles rather than community property rules. Additionally, any change in the nature of debts from separate to marital or vice versa would be handled according to Indiana's laws on marital debt division during a divorce, which consider factors such as the nature of the debt, who incurred it, and for what purpose. Creditors' rights are also protected under Indiana law, and any agreement between spouses that affects a creditor's ability to collect a debt would typically require the creditor's written consent.