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Does Separate Property Ever Become Community Property In California? Separate property becomes community property in California through several mechanisms. One common way is through the commingling of funds. When separate property funds, such as inheritances, are mixed with community property funds (like deposits into a joint bank account), they lose their separate status. This intermingling often complicates the division process as it blurs the lines between separate and community assets. Transmutation is another pathway for this change. It involves a conscious decision by the spouses to change the nature of the property. For example, if a separate property asset is retitled to include both spouses' names, it becomes community property. This process requires mutual consent and often a written agreement to be legally recognized.