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.

Pennsylvania 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 according to what is fair and equitable, which may not necessarily be equal. In community property states, property acquired during marriage is considered owned jointly by both spouses and is divided equally upon divorce. However, since Pennsylvania does not follow community property laws, there is no legal framework for agreements to convert separate property to community property, known as transmutation agreements, within the state. Debts in Pennsylvania are also treated according to equitable distribution principles during a divorce, rather than the community property approach where debts may be divided equally. Therefore, the concept of changing the character of debts from separate to community or vice versa through transmutation does not apply in Pennsylvania. Married persons in Pennsylvania looking to change the nature of their property or debts should consult with an attorney to understand the implications under the state's equitable distribution laws and to explore other legal mechanisms that may be available for property and debt management.