Management and Control of Community Property – Family Code 1100 and 1102

Community property belongs to both spouses equally, and so does the power to manage it. But equal power does not mean unlimited power, and the limits matter most when a marriage is ending.

California Code Family Code § 1100 gives either spouse the management and control of community personal property, with the same power of disposition the spouse has over his or her own separate property. The statute then carves out exceptions. A spouse may not make a gift of community personal property, or dispose of it for less than fair value, without the other spouse’s written consent. A spouse may not sell or encumber the furniture, furnishings or clothing of the family home without written consent. And a spouse who operates a community business has primary management of it but must give prior written notice before selling or encumbering substantially all of its assets.

Community real property is treated more strictly. Under California Code Family Code § 1102, both spouses must join in any instrument that sells, conveys or encumbers community real property, or leases it for more than one year. A deed or mortgage signed by one spouse alone is voidable by the other.

All of this operates alongside the fiduciary duty between spouses. Once a divorce is filed, the automatic temporary restraining orders on the summons add a further layer, prohibiting transfers outside the ordinary course without the other spouse’s consent or a court order.