In re Marriage of Begian & Sarajian ( 2019 )


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  • Filed 12/20/18; pub. order 1/18/19 (see end of opn.)
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION THREE
    In re Marriage of RICHARD                          B278316
    BEGIAN and IDA SARAJIAN.
    Los Angeles County
    RICHARD BEGIAN,                                    Super. Ct. No. GD058108
    Appellant,
    v.
    IDA SARAJIAN,
    Respondent.
    APPEAL from an order of the Superior Court of
    Los Angeles County, Theresa Traber, Judge. Reversed.
    Law Offices of Donald P. Schweitzer and Patrick
    Baghdaserians; Garrett C. Dailey for Appellant.
    Honey Kessler Amado and James A. Karagianides
    for Respondent.
    _________________________
    INTRODUCTION
    Family Code section 852, subdivision (a)1 (section 852(a))
    provides that a “transmutation,” or an interspousal transaction
    changing the character of community or separate property, “is not
    valid unless made in writing by an express declaration” by the
    adversely affected spouse. (Italics added.) In Estate of
    MacDonald (1990) 
    51 Cal.3d 262
     (MacDonald), our Supreme
    Court held that a writing satisfies the “express declaration”
    requirement only if it states on its face that “the characterization
    or ownership of the property is being changed.” (Id. at p. 272.)
    The MacDonald court also made clear that its construction of
    section 852(a) precludes the use of extrinsic evidence to prove an
    ambiguous writing effected a transmutation. (Id. at p. 264; In re
    Marriage of Benson (2005) 
    36 Cal.4th 1096
    , 1100 (Benson).)
    In this case we must decide whether a “Trust Transfer
    Deed,” signed by Richard Begian, granting certain real property
    to his wife, Ida Sarajian, met section 852(a)’s express declaration
    requirement.2 The trial court determined the document’s use of
    the words “grant” and “gift” satisfied the requirement, because
    those terms have “an accepted historical meaning” in real
    property transactions, and thus gave Richard “clear notice” that
    he was changing the property’s characterization and ownership.
    Notwithstanding the historical meaning of these terms, we
    conclude that without an express statement specifying what
    1    Statutory references are to the Family Code unless
    otherwise designated.
    2    Ida’s mother, Rose Sarajian, was also a party to the Trust
    Transfer Deed. For clarity we refer to the parties by their first
    names.
    2
    interest in the property was granted to Ida, the reference to a
    “Trust Transfer” leaves the document’s purpose ambiguous, and
    thus renders the purported transmutation invalid under section
    852(a). We reverse.
    FACTS AND PROCEDURAL BACKGROUND
    Richard and Ida married in August 1993 and lived together
    until their separation in September 2015. They have two
    children.
    This appeal concerns a residential property located on
    Avonoak Terrace in Glendale, California (Avonoak). On April 29,
    1996, Ida’s mother, Rose, executed a “QUITCLAIM DEED”
    transferring a 48 percent undivided interest in Avonoak to Ida.
    Rose retained a 52 percent interest in the property.
    On the same day, Richard executed a “QUITCLAIM DEED”
    transferring his ownership interest in Avonoak to Ida, as her sole
    and separate property. The deed stated: “IT IS THE EXPRESS
    INTENT OF THE GRANTOR, BEING THE SPOUSE OF THE
    GRANTEE, TO CONVEY ALL RIGHT, TITLE AND INTEREST
    OF THE GRANTOR COMMUNITY OR OTHERWISE, IN AND
    TO THE HEREIN DESCRIBED PROPERTY, TO THE
    GRANTEE AS HIS/HER SOLE AND SEPARATE PROPERTY.”
    On June 21, 2001, Rose and Ida executed an “INDIVIDUAL
    GRANT DEED” granting their respective 52 percent and 48
    percent interests in Avonoak to “ROSE SARAJIAN, a Widow[,]
    and IDA SARAJIAN and RICHARD BEGIAN, Wife and
    Husband, All as Joint Tenants.” Ida does not dispute that the
    deed effectively granted Richard a community property interest
    in Avonoak.
    On May 1, 2006, Rose, Ida, and Richard executed a “Trust
    Transfer Deed.” The deed stated: “FOR NO CONSIDERATION,
    3
    GRANTORS ROSE SARAJIAN, a Widow, and IDA SARAJIAN
    and RICHARD BEGIAN, Wife and Husband, all as joint tenants,
    hereby GRANT to IDA SARAJIAN, the following real property
    [legal description of Avonoak].” The deed stated the conveyance
    was not subject to a documentary transfer tax because “ ‘this is a
    bonafide gift and the grantor received nothing in return, R & T
    11911.’ ”3
    On December 19, 2014, Ida created the “Ida Sarajian
    Separate Property Trust,” naming herself as trustee and her
    children as beneficiaries. The same day, Ida executed another
    “Trust Transfer Deed” stating “FOR NO CONSIDERATION,
    GRANTOR Ida Sarajian, a married woman as her separate
    property, hereby GRANTS to Ida Sarajian, Trustee of The Ida
    Sarajian Separate Property Trust dated December 19, 2014, the
    following described real property [legal description of Avonoak].”
    On October 9, 2015, Richard commenced the underlying
    dissolution action, and requested the court confirm Avonoak as
    community property. Ida asserted the residence was her
    separate property.
    On June 29, 2016, the trial court bifurcated the question of
    Avonoak’s characterization from the remaining issues in the case.
    Richard argued the 2006 Trust Transfer Deed lacked an
    unambiguous declaration of his intention, as the adversely
    affected spouse, to transmute his community property interest
    into Ida’s separate property. He maintained the document “was
    3     Revenue and Taxation Code section 11911 authorizes the
    board of supervisors of any county or city to impose a tax on the
    transfer of real property when the consideration paid for the
    property exceeds $100.
    4
    prepared and signed in connection with estate planning,” as
    demonstrated by the document’s title, and the document made
    “absolutely no mention of the property rights being changed or
    the fact that [Richard’s] interest [was] being adversely affected.”
    Because “[n]othing on the face of the document explicitly state[d]
    that [he] was waiving away all of his community property
    ownership interest,” Richard maintained the Trust Transfer Deed
    failed to meet section 852(a)’s express declaration requirement.
    Ida argued the use of the word “grant” in the 2006 Trust
    Transfer Deed unambiguously demonstrated the parties’
    intention to change the characterization and ownership of
    Avonoak from a joint tenancy into Ida’s separate property.
    Anticipating Richard’s argument, Ida maintained the document’s
    title was irrelevant to the express declaration analysis, because
    the Trust Transfer Deed named the grantee only as “ ‘Ida
    Sarajian,’ ” and it made no reference to “her capacity as trustee of
    any trust,” let alone the Ida Sarajian Separate Property Trust,
    which did not exist in 2006.
    On August 29, 2016, the trial court issued a statement of
    decision finding the 2006 Trust Transfer Deed validly
    transmuted Richard’s community interest in Avonoak into Ida’s
    separate property. Quoting from Estate of Bibb (2001) 
    87 Cal.App.4th 461
     (Bibb), the court observed that “ ‘ “grant” is the
    historically operative word for transferring interests in real
    property,’ ” and reasoned the parties’ use of the word in the Trust
    Transfer Deed thus satisfied section 852(a)’s express declaration
    requirement. The court added that its conclusion was reinforced
    by the phrase “bonafide gift,” explaining “this provision gave
    [Richard] clear notice that he was making a gift to [Ida] through
    the deed and, thus, making a change in the characterization or
    5
    ownership of the property.” Finally, the court determined the
    deed’s title did “not undermine the clear expression” of intent,
    because “the deed transfers Avonoak to [Ida], not to any trust,
    and there is no trust identified on the face of the document.”
    On September 14, 2016, the trial court filed an order deeming
    Avonoak to be Ida’s separate property for the reasons stated in
    its statement of decision.
    On October 3, 2016, the trial court filed a certificate of
    probable cause for immediate appeal of its order on the bifurcated
    issue. On October 10, 2016, Richard filed a motion with this
    court for leave to appeal the bifurcated issue.4 We granted the
    motion and now consider the matter.
    DISCUSSION
    1.     The Express Declaration Requirement and Standard
    of Review
    The question presented in this case is whether the trial
    court correctly determined Richard’s execution of the 2006 Trust
    Transfer Deed effectively transmuted his community interest in
    Avonoak into Ida’s separate property. Section 850, subdivision
    (b) provides that married persons may transmute the community
    property of either spouse into separate property “by agreement or
    transfer,” subject to the provisions of sections 851 to 853. Section
    852(a) provides: “A transmutation of real or personal property is
    not valid unless made in writing by an express declaration that is
    4    Due to a clerical error, this court initially rejected Richard’s
    motion. Upon review, the court concluded the motion was
    properly presented and deemed it filed as of the original
    October 10, 2016 date.
    6
    made, joined in, consented to, or accepted by the spouse whose
    interest in the property is adversely affected.” (Italics added.)
    In MacDonald, our Supreme Court interpreted the phrase
    “express declaration” in section 852(a) to require language
    expressly stating that a change in the characterization or
    ownership of the property is being made. (MacDonald, supra,
    51 Cal.3d at p. 272.) Thus, “a writing signed by the adversely
    affected spouse is not an ‘express declaration’ for the purposes of
    [section 852(a)] unless it contains language which expressly states
    that the characterization or ownership of the property is being
    changed.” (Ibid., italics added.)
    An “express declaration” does not require use of the terms
    “transmutation,” “community property,” “separate property,” or
    any other particular locution. (MacDonald, supra, 51 Cal.3d at
    pp. 272-273.) As the Supreme Court explained in MacDonald,
    the language “ ‘I give to the account holder any interest I have in
    the funds deposited in this account,’ ” is sufficient to establish a
    transmutation. (Ibid.) However, while “no particular
    terminology is required [citation], the writing must reflect a
    transmutation on its face, and must eliminate the need to
    consider other evidence in divining this intent.” (Benson, supra,
    36 Cal.4th at pp. 1106-1107.) In other words, “[t]he express
    declaration must unambiguously indicate a change in character
    or ownership of property.” (In re Marriage of Starkman (2005)
    
    129 Cal.App.4th 659
    , 664 (Starkman), italics added.) An
    instrument is ambiguous if “ ‘the written language is fairly
    susceptible of two or more constructions.’ ” (Estate of Russell
    (1968) 
    69 Cal.2d 200
    , 211.)
    MacDonald concluded strict adherence to formalities was
    required to ensure a “party does not ‘slip into a transmutation by
    7
    accident.’ ” (Starkman, supra, 129 Cal.App.4th at p. 664.; In re
    Marriage of Barneson (1999) 
    69 Cal.App.4th 583
    , 593 (Barneson)
    [“MacDonald was based in part on a policy of ‘assuring that a
    spouse’s community property entitlements are not improperly
    undermined.’ ”].) As our Supreme Court elaborated in Benson,
    “section 852 might prevent courts from finding a transmutation
    in cases where some evidence suggests the spouses meant to
    change the character of their property, but where they failed to
    follow the statutory requirements.” (Benson, supra, 36 Cal.4th at
    p. 1107.) Nonetheless, “any incongruous results” must be
    attributed to “the manner in which lawmakers ultimately chose
    to balance the competing policy concerns,” and “MacDonald
    declined to second-guess the legislative decision to sacrifice
    informality in transmutations in favor of protecting community
    property and promoting judicial economy.” (Ibid., citing
    MacDonald, supra, 51 Cal.3d at p. 273.)
    “In deciding whether a transmutation has occurred, we
    interpret the written instruments independently, without resort
    to extrinsic evidence.” (Starkman, supra, 129 Cal.App.4th at
    p. 664; MacDonald, supra, 51 Cal.3d at pp. 271-272.) To
    effectuate a valid transmutation, there must be some writing by
    the owner “contain[ing] on its face a clear and unambiguous
    expression of intent to transfer an interest in the property,
    independent of extrinsic evidence.” (Bibb, supra, 87 Cal.App.4th
    at p. 468.) “Under the circumstances, we are not bound by the
    interpretation given to the written instruments by the trial
    court.” (Starkman, at p. 664; In re Marriage of Lund (2009) 
    174 Cal.App.4th 40
    , 50 (Lund).) Thus, we review the question de
    novo, exercising our independent judgment to determine whether
    the proffered writing contains the requisite language to
    8
    effectuate a transmutation under section 852(a). (Starkman, at
    p. 664; Barneson, supra, 69 Cal.App.4th at p. 588; see also Adams
    v. MHC Colony Park, L.P. (2014) 
    224 Cal.App.4th 601
    , 619 [“The
    inquiry into ambiguity presents a question of law subject to
    independent review on appeal.”].)
    2.      The Trust Transfer Deed Does Not Unambiguously
    Indicate a Change in Character or Ownership of
    Avonoak
    Richard argues the Trust Transfer Deed contains two
    critical ambiguities that together preclude a finding that it meets
    section 852(a)’s express declaration requirement. First, Richard
    emphasizes the instrument’s title―“Trust Transfer Deed,” which
    he says necessarily “suggests the transfer is associated with a
    trust.” Second, he points to the conveyance language itself,
    stressing “the deed does not say what interest is being granted.”
    Taken together with the reference to a “Trust Transfer,” Richard
    maintains the conveyance language is reasonably susceptible of
    the interpretation that he granted his community interest in
    Avonoak to Ida to be held in trust, and not to effect a change in
    the marital character or ownership of the property. Because his
    intention as gleaned solely from the face of the Trust Transfer
    Deed is ambiguous, Richard argues the writing does not satisfy
    the express declaration requirement. We agree.
    Barneson is instructive. In Barneson, the husband, after
    suffering a stroke, gave written instructions to his stockbroker to
    “ ‘sell, assign, and transfer’ ” stock into his wife’s name and
    “journal” stock in his account into his wife’s account. (Barneson,
    supra, 69 Cal.App.4th at p. 586.) Years later, the husband filed a
    petition for dissolution of marriage and sought return of the
    stock. The trial court found the stock transfers effectively
    9
    transmuted the stock to the wife’s separate property under
    section 852(a). The appellate court reversed.
    The Barneson court explained, “MacDonald’s interpretation
    of the ‘express declaration’ language in section 852, subdivision
    (a), can be viewed as effectively creating a ‘presumption’ that
    transactions between spouses are not ‘transmutations,’
    rebuttable by evidence the transaction was documented with a
    writing containing the requisite language.” (Barneson, supra, 69
    Cal.App.4th at p. 593.) In concluding the proffered writing failed
    to rebut the presumption, the court rejected the assertion that
    the instructions unambiguously directed a “change in ownership,”
    observing the instructions “only directed ‘transfer’ of the stocks to
    [the wife], without specifying what interest was to be transferred.”
    (Id. at p. 590, italics added.) This ambiguity allowed for an
    interpretation that the husband “may simply have intended to
    enable [the wife] to more easily manage his financial affairs for
    him after his stroke―in other words, he may have intended to
    transfer management of the property without changing its
    ownership or characterization.” (Id. at p. 591.)
    As particularly relevant to this case, the Barneson court
    also observed that “[n]othing on the face of the documents . . .
    precludes the possibility the transfer was made in trust.”
    (Barneson, supra, 69 Cal.App.4th at p. 591, italics added.) In
    identifying this possibility, the court clarified that it was not
    suggesting “there is evidence of such a trust in the present case,
    nor that we could directly consider such evidence in determining
    whether [the husband’s] directives transmuted his property
    within the meaning of section 852, subdivision (a)―as stated
    above, the determination whether the MacDonald test has been
    met must be made without resort to parol evidence.” (Ibid.)
    10
    Rather, the point was “simply that a direction by a spouse to
    transfer stock into his spouse’s name does not unambiguously
    indicate the ownership of the stock is being changed.” (Ibid.,
    italics added.)
    Ida argues Barneson is distinguishable. Unlike the writing
    in Barneson, she emphasizes the Trust Transfer Deed did not use
    only the word “transfer,” but also stated “that the transfer was ‘a
    bonafide gift’ and that Richard was ‘granting’ the property to
    Ida.” In view of this additional conveyance language, Ida
    maintains Bibb is the better authority to guide our analysis.
    The issue in Bibb was whether a grant deed executed by
    the husband, transferring real estate owned as his separate
    property to himself and his wife as joint tenants, was sufficient to
    transmute the property under section 852(a). (Bibb, supra, 87
    Cal.App.4th at p. 465.) The grant deed at issue stated: “ ‘For a
    valuable consideration, receipt of which is hereby acknowledged,
    E.L. Bibb, as surviving joint tenant hereby grant(s) to E.L. Bibb
    and Evelyn R. Bibb, his wife as joint tenants the following
    described real property in the City of Berkeley . . . .’ ” (Id. at
    p. 468, fn. 3.) The husband’s child from a prior marriage argued
    the grant deed did not satisfy the express declaration
    requirement, because it did “not contain language ‘ “expressly
    stating that the characterization or ownership of the property
    [was] being changed.” ’ ” (Id. at p. 465.) The wife responded that
    the property was “presumed to be held in joint tenancy, as
    described in the grant deed, and, therefore, [was] excluded from
    11
    probate under Probate Code section 6600, subdivision (b)(1).”5
    (Ibid.)
    The Bibb court held the grant deed’s language was
    adequate to satisfy the express declaration requirement.
    Addressing the argument that the deed failed to meet the
    MacDonald standard, the Bibb court explained: “The deed is
    drafted in the statutory form required for expressing an intent to
    transfer an interest in real property. [Citations.] Since the
    MacDonald court held that the [proffered writings] would have
    been adequate for a valid transmutation had they said, ‘ “I give to
    the account holder any interest I have . . . ,” ’ and since ‘grant’ is
    the historically operative word for transferring interests in real
    property, there is no doubt that [the husband’s] use of the word
    ‘grant’ to convey the real property into joint tenancy satisfied the
    express declaration requirement of section 852, subdivision (a).
    [Citation.] Thus, the Berkeley property was validly transmuted
    into property held in joint tenancy, became [the wife’s] separate
    property upon [the husband’s] death, and was properly excluded
    from the probate estate.” (Bibb, supra, 87 Cal.App.4th at
    pp. 468-469, citing § 852(a) & Prob. Code, § 6600, subd. (b)(1).)
    Although neither case is perfectly analogous to this one, we
    find the facts and analysis of Barneson to be more apposite than
    those of Bibb. Ida is correct that the Bibb court expressly rested
    its holding on the premise that “ ‘grant’ is the historically
    5      Probate Code section 6600, subdivision (b)(1) states: “Any
    property or interest or lien thereon which, at the time of the
    decedent’s death, was held by the decedent as a joint tenant, or in
    which the decedent had a life or other interest terminable upon
    the decedent’s death, shall be excluded in determining the estate
    of the decedent or its value.”
    12
    operative word for transferring interests in real property” (Bibb,
    supra, 87 Cal.App.4th at p. 469), and, in this respect, Richard’s
    use of the word likewise must be viewed as an unambiguous
    expression of his intent to transfer an interest in Avonoak to Ida.
    But unlike Bibb, where the court was forced to conclude the
    property “became [the wife’s] separate property upon [the
    husband’s] death” due to his “use of the word ‘grant’ to convey the
    real property into joint tenancy” (ibid., italics added), here,
    Richard’s mere use of the word “grant” does not dictate a definite
    conclusion about what interest in Avonoak he meant to convey to
    Ida. In other words, as was true of the phrase “sell, assign, and
    transfer” in Barneson, Richard’s use of the word “grant” is
    ambiguous, because the word only establishes his intention to
    transfer an interest in real property, “without specifying what
    interest was to be transferred.” (Barneson, supra, 69 Cal.App.4th
    at p. 590, italics added; see Benson, 
    supra,
     36 Cal.4th at p. 1107
    [citing Barneson as example of decision that properly “adhere[d]
    closely to MacDonald, and decline[d] to find a valid
    transmutation absent express written language to that effect,”
    noting the “written brokerage instructions changed possession,
    not ownership, of stock”].)
    The reference to a “Trust Transfer” in the deed’s title
    compounds this ambiguity, because it suggests, as Richard
    maintains, that the conveyance to Ida may have been made for
    the purpose of placing the property into a trust, and not with the
    intention to change its marital character or ownership. (See, e.g.,
    Starkman, supra, 129 Cal.App.4th at pp. 662, 665 [husband’s
    execution of general assignment document transferring all
    property into family trust for estate planning purposes was not
    an express declaration, notwithstanding trust provision stating,
    13
    “any property transferred by either [Settlor] to the Trust . . .
    is the community property of both of them”].) Ida argues the
    reference to a trust transfer should raise no concern, because
    under established principles of contract and statutory
    construction a “title” or “label in a legal document” is “not
    controlling” of its effect, and because the body of the deed
    “does not mention any trust.” We are not persuaded.
    While it may be that a title or label is not “controlling”
    where specific provisions of the writing dictate a definite
    interpretation, it is not true that the characterization of a
    transfer in a deed’s title is irrelevant to the express declaration
    inquiry. Thus, in In re Marriage of Kushesh & Kushesh-Kaviani
    
    27 Cal.App.5th 449
    , the court reasoned that an
    “ ‘INTERSPOUSAL TRANSFER GRANT DEED’ ” presented a
    better case for finding an express declaration than the grant deed
    in Bibb, because “not only did the writing use the verb
    ‘grant’―the main point of Bibb―but the heading added the words
    ‘interspousal’―denoting a spouse-to-spouse transaction―and
    ‘transfer grant’―denoting that whoever was doing the granting
    was actually transferring something out of that person’s estate.”
    (Marriage of Kushesh, at pp. 454-455, italics added.) Absent an
    unambiguous statement that the transfer would change the
    character or ownership of Avonoak, the document’s title makes it
    reasonable to entertain the possibility that Richard executed the
    deed for the purpose of making only a “Trust Transfer.” (See
    Barneson, supra, 69 Cal.App.4th at p. 591; Starkman, supra, 129
    Cal.App.4th at pp. 662, 665; cf. Lund, supra, 174 Cal.App.4th at
    pp. 51-52 [provision stating “ ‘[a]ll of the property, real and
    personal, held in the name of Husband having its origin in his
    separate property . . . is hereby converted to community property
    14
    of Husband and Wife’ ” was sufficient to meet express declaration
    requirement, notwithstanding “recitals . . . indicating the
    agreement was executed for ‘estate planning purposes’ ”].)
    The absence of a named trust or trustee in the Trust
    Transfer Deed does not clarify the ambiguity. As in Barneson,
    the ambiguity in the Trust Transfer Deed stems from its lack of
    specificity about what interest Richard granted to Ida. Thus,
    regardless of what extrinsic evidence would show about the
    existence of a trust, Richard’s intention remains ambiguous in
    that “[n]othing on the face of the document[ ] upon which the
    transmutation claim is based precludes the possibility the
    transfer was made in trust.” (Barneson, supra, 69 Cal.App.4th at
    p. 591 [“We do not suggest there is evidence of such a trust in the
    present case . . . . The point is simply that a direction . . . to
    transfer stock into [a] spouse’s name does not unambiguously
    indicate the ownership of the stock is being changed.”].) Indeed,
    here we have more than just a lack of language precluding the
    possibility. In this case we actually have language in the
    proffered transmutation instrument that expressly refers to a
    “Trust Transfer.” Basing our judgment solely on the face of the
    document, we are forced to acknowledge it is reasonably
    susceptible of the interpretation that Richard transferred his
    interest in Avonoak to Ida only for the purpose of depositing it
    into a trust, without changing the character or ownership of the
    property. (See Starkman, supra, 129 Cal.App.4th at pp. 662,
    665.)
    The same analysis applies to the language characterizing
    the transfer as a “bonafide gift” for which the grantors “received
    nothing in return.” Contrary to Ida’s contention, the MacDonald
    court did not suggest that mere use of the word “give,” without
    15
    more, would have satisfied the express declaration requirement.
    Rather, in clarifying that no particular locution was mandated,
    the Supreme Court remarked that the transfer documents would
    have been sufficient had they specified what interest was being
    conveyed―e.g., “ ‘I give to the account holder any interest I have
    in the funds deposited in this account.’ ” (MacDonald, supra, 51
    Cal.3d at pp. 272-273, italics added.)6 A statement like this
    clearly satisfies the MacDonald standard, not because “give” has
    special meaning, but because the conveyance of “any interest I
    have” unambiguously declares that “ownership of the property is
    being changed.” (Id. at p. 272.) The same cannot be said for the
    bare statement that a conveyance is a “bonafide gift” exempt from
    the documentary transfer tax. Indeed, as Richard points out, if
    he had transferred Avonoak to Ida in connection with a trust, he
    also would have received no consideration, and the transfer
    would have been a “gift” exempt from the tax.7
    6
    In Barneson, the court similarly commented that the
    transfer instructions would have been sufficient had they
    indicated the husband was “giving his interest in the stocks to
    [the wife].” (Barneson, supra, 69 Cal.App.4th at pp. 593-594.) In
    doing so, the court relied upon the quoted statement from
    MacDonald, and thus could not have intended its remark to
    establish a more expansive standard for validating a
    transmutation than the MacDonald court envisioned. This is
    especially apparent since the principal fault the Barneson court
    found in the transfer instructions was that they failed to specify
    “what interest was to be transferred.” (Barneson, at p. 590.)
    7    At oral argument, Ida’s counsel suggested the reference to a
    “bonafide gift” unambiguously established a change in marital
    character because, under section 770, gifts received during
    marriage are presumed to be the separate property of the
    16
    None of this is to say that Ida’s proffered interpretation of
    the Trust Transfer Deed is unreasonable. All we hold is that the
    deed is fairly susceptible of at least two interpretations―the one
    Ida proffers, whereby Richard granted all of his interest in
    Avonoak to her, thereby transmuting the residence into her
    separate property, and the one Richard proffers, whereby he
    granted only an interest in trust to Ida for the couple’s estate
    planning purposes. As numerous other courts have observed,
    this ambiguity would have been eliminated by including
    language in the Trust Transfer Deed specifying that Richard
    granted all or any interest he had in Avonoak to Ida, or, as he
    had in the 1996 quitclaim deed, by stating he granted Avonoak to
    Ida “as her sole and separate property.” However, because no
    definitive judgment about the adversely affected spouse’s
    intention can be made from the face of the Trust Transfer Deed
    alone, and because the court is barred from considering extrinsic
    evidence that might allow it to resolve the conflicting
    interpretations in favor of finding a transmutation, we are left
    with the default presumption that this interspousal transaction
    was not a transmutation of Richard’s community interest in the
    property. (See Barneson, supra, 69 Cal.App.4th at p. 593.)
    receiving spouse. The presumption is insufficient to establish an
    express declaration for the same reason the deed’s language
    standing alone is ambiguous―that is, it does not clarify what
    interest in Avonoak was given to Ida.
    17
    DISPOSITION
    The trial court’s decision on the bifurcated issue is
    reversed. Each party to bear his and her own costs.
    EGERTON, J.
    We concur:
    EDMON, P. J.
    LAVIN, J.
    18
    Filed 1/18/19
    CERTIFIED FOR PUBLICATION
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION THREE
    In re Marriage of RICHARD BEGIAN             B278316
    and IDA SARAJIAN.
    ___________________________________          Los Angeles County
    RICHARD BEGIAN,                              Super. Ct. No. GD058108
    Appellant,                          ORDER CERTIFYING
    FOR PUBLICATION
    v.                                  [NO CHANGE IN JUDGMENT]
    IDA SARAJIAN,
    Respondent.
    THE COURT:
    The opinion in the above-entitled matter filed on December
    20, 2018, was not certified for publication in the Official Reports.
    For good cause, it now appears that the opinion should be
    published in the Official Reports.
    There is no change in the judgment.
    ____________________________________________________________
    EGERTON, J.              EDMON, P. J.               LAVIN, J.
    19
    

Document Info

Docket Number: B278316

Filed Date: 1/18/2019

Precedential Status: Precedential

Modified Date: 1/18/2019