California Family Code § 1500: Alteration of Spouses’ Property Rights by Agreement

Plain-Language Summary

Under California law, married people normally follow set rules about who owns property (for example, income earned during marriage is usually owned jointly by both spouses). Family Code §1500 says those default rules can be changed if the spouses agree. In plain English, this means a husband and wife can use a written agreement – before marriage (a prenuptial agreement) or during marriage (such as a postnup or marital settlement agreement) – to decide their own property arrangement. For example, a couple might agree that each person’s earnings and assets during the marriage will remain separate property of that spouse, rather than community property shared 50/50. Section 1500 makes clear that such agreements are valid to override the usual statutory property rights, as long as the agreement is valid and voluntarily made. In short, spouses can contract to set their own property rules instead of relying on the default legal rules.

Examples

• Premarital Agreement: Alice and Bob plan to marry. They sign a prenuptial agreement stating that Alice’s family home and Bob’s business will be kept as each person’s separate property. Under §1500, this agreement is recognized by law, so those assets will not be treated as community property in the future.
• Postnuptial Property Agreement: After marriage, Carla and Dan execute a postnuptial agreement specifying that Carla’s inheritance and Dan’s pension contributions will remain separate property. Although community-property rules would normally apply, §1500 allows them to change that outcome by mutual agreement.
• Divorce Settlement Agreement: Emily and Frank are divorcing and enter into a marital settlement agreement dividing assets differently than the default law. For instance, the agreement gives Emily the entire equity in the family home (instead of splitting it) and gives Frank a larger share of the savings account. Section 1500 means the court will enforce that agreed division of property because the spouses have altered the statutory property rights by contract.

Case Law

• Sturm v. Moyer (2019) 32 Cal.App.5th 299 – The Court of Appeal upheld a premarital agreement that made each spouse’s earnings and property during marriage their separate property. The court noted that Family Code §1500 “authorizes the use of a premarital agreement” to change the default community property presumption. In Sturm, the husband’s prenup removed his wife’s income from the community estate. The court confirmed that this alteration of statutory property rights was valid under §1500 (though the agreement’s effect was later examined for fraud under other laws).
• In re Marriage of Bonds (2000) 24 Cal.4th 1 – The California Supreme Court enforced a prenuptial agreement in which the spouses waived any rights in each other’s earnings and assets. The Court emphasized that spouses have the power to contractually set their property rights. Although Bonds focused on spousal support, the Court discussed §1500 to explain that premarital contracts altering property ownership are generally enforceable. The ruling confirms that a valid premarital agreement can override the usual marital property rules, so long as the contract meets legal requirements (such as voluntary execution with disclosure).

Full Text of California Family Code § 1500

California Family Code § 1500. The property rights of spouses prescribed by statute may be altered by a premarital agreement or other marital property agreement.

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