The Community Property Presumption and the Title Presumption – Family Code 760 and 2581

California’s property rules rest on two presumptions. Knowing which one applies to an asset tells you who has to prove what.

The general presumption is California Code Family Code § 760: all property acquired by a married person during the marriage while living in California is community property, except as otherwise provided by statute. The presumption can be rebutted by tracing the asset to a separate property source, such as an inheritance, a gift, or funds owned before the marriage.

The title presumption is California Code Family Code § 2581. For purposes of dividing property at divorce or legal separation, property acquired during marriage in joint form, including joint tenancy, tenancy in common, community property or community property with right of survivorship, is presumed to be community property. This presumption is stronger: it can be rebutted only by a clear statement in the deed or other title document that the property is separate, or by a written agreement of the parties to that effect. Tracing alone does not defeat it.

The two presumptions interact with the reimbursement right in California Code Family Code § 2640: a spouse who contributed separate property to the acquisition of a jointly titled asset may be reimbursed for that contribution, without interest, even though the asset itself is community. Keeping records of where down payments and large contributions came from is the single most useful thing a spouse can do to protect a separate property claim.