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.

Oregon is not a community property state; it is an equitable distribution state. This means that during a divorce, marital property is not automatically assumed to be owned equally by both spouses. Instead, the court will divide marital property in a manner that is equitable, or fair, which may not necessarily be equal. Since Oregon does not follow community property laws, the concept of transmutation agreements, where separate property is converted to community property, is not applicable in the same way it is in community property states. However, Oregon law does allow spouses to enter into agreements regarding the division of their property, and such agreements can include provisions that change the character of certain property from separate to marital, or vice versa. These agreements are typically considered during divorce proceedings and must be in writing to be enforceable. As for debts, Oregon courts will also equitably divide marital debts, and agreements between spouses regarding the responsibility for debts must also be in writing. Creditors, however, are not bound by such agreements between spouses unless the creditor agrees in writing to the arrangement.