California Family Code § 754: Three-Month Freeze on Separate Property Transfers During Divorce Proceedings

Plain-Language Summary

California Family Code § 754 is a law that temporarily prevents one spouse from unilaterally selling or mortgaging certain property when a divorce or legal separation is underway. In plain terms, here’s what it means:

  • Once a notice of a pending divorce or separation (called a lis pendens) is officially recorded on a piece of real estate owned solely by the other spouse (i.e., the property is that spouse’s separate property), that property is effectively “frozen” from being transferred.
  • For three months after the notice is recorded, the property cannot be sold, refinanced, or otherwise transferred by either spouse unless both spouses agree (by signing the papers) or a court gives permission. In other words, both spouses must join in approving any transfer, or a judge must order it, during this period.
  • This rule applies to both voluntary actions (like a sale or a new mortgage initiated by the owner spouse) and involuntary actions (like a foreclosure or forced sale by a creditor). The law places a temporary hold on the property’s title so that it can’t be disposed of without oversight right after divorce proceedings begin.
  • The purpose of § 754 is to prevent rash or unfair disposals of property at the start of a divorce. It protects the non-owner spouse’s potential rights and living situation – for example, stopping an owner from quickly selling a home that the other spouse is living in or might have a financial interest in – until the matter can be reviewed by the court.

Real-World Examples

  • Family Home Protection: Alice owns a house that she purchased before the marriage (her separate property), and her husband, Ben, has been living there with her. When their marriage falters, Ben files for divorce and records a notice of the pending divorce (lis pendens) on Alice’s property with the county. Under Family Code § 754, Alice cannot sell or refinance that house for the next three months unless Ben agrees to the transaction or the court permits it. This gives Ben assurance that the home won’t be sold out from under him in the early stages of the divorce.
  • Attempted Sale of an Investment Property: John owns a rental duplex in his name only, making it his separate property. After John’s wife files for legal separation, she records a lis pendens (notice of the pending proceeding) on that property. A few weeks later, John finds a buyer and tries to quickly sell the duplex. Because of the § 754 freeze, the sale cannot go through without his wife’s written consent or a court order as long as it’s within the three-month period after the notice was recorded.
  • Stopping a New Loan: Maria is going through an annulment with her spouse. Maria’s beach cottage is her separate property, so her spouse records a notice of the pending annulment on that property. Shortly after, Maria attempts to take out a home equity loan on the cottage. The bank discovers the lis pendens and informs her that, due to Family Code § 754, it cannot proceed with the loan unless Maria’s spouse also signs off or the court allows the lien. The law prevents Maria from unilaterally encumbering the property with new debt during the freeze period.

Published Case Law on § 754

There appear to be no published California appellate or Supreme Court decisions that specifically interpret or apply Family Code § 754. (This suggests the provision is generally clear in application, and disputes about it have not reached the appellate level in any notable way.)

Full Text of California Family Code § 754

754. If notice of the pendency of a proceeding for dissolution of the marriage, for nullity of the marriage, or for legal separation of the parties is recorded in any county in which either spouse resides on real property that is the separate property of the other, the real property shall not for a period of three months thereafter be transferred, encumbered, or otherwise disposed of voluntarily or involuntarily without the joinder of both spouses, unless the court otherwise orders.

This content is provided for general informational purposes only and is not legal advice. Laws and their interpretations can change, and how the law applies to your specific situation may vary. For advice regarding your own circumstances, consult a qualified attorney.