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.

Massachusetts is not a community property state; it is an equitable distribution state. This means that in the event of a divorce, marital property is not automatically split 50/50 as it would be in community property states. Instead, the courts in Massachusetts divide marital property in a manner that is considered fair and equitable, which may not necessarily be equal. The concept of transmutation agreements, where separate property is converted to community property, is not applicable in Massachusetts as it would be in community property states. Therefore, married persons in Massachusetts do not have the option to enter into such agreements under state law. Debts incurred during the marriage are typically considered marital debts and are divided during the divorce proceedings according to the principles of equitable distribution. Creditors' rights are generally determined by the contract with the creditor and applicable federal and state laws, not by marital agreements between spouses.