Converted Property and Informal Marriage

An interesting case out of the San Antonio Court of Appeals; a couple entered into an informal marriage and at the time the Husband owned a separate property ranch. After the Wife discovered her Husband was having an affair with her sister, the Husband and Wife signed a series of agreements where they called the Ranch “our property” and that they owned it 50/50.  The trial Court found this sufficient to convert the Husband’s ranch from separate property to community property.  The Family Code states that a conversion agreement (1) be in writing, (2) be signed by the spouses, (3) identify the property being converted, and (4) specify that the property is being converted.  It seems that the Court allowed the fourth requirement to be inferred as none of these agreements referenced an actual conversion.  As is often the case, bad facts can create unusual outcomes. The lesson is to be careful what you put in writing and don’t have an affair with your sister in law.