California Family Code Section 1100 gives each spouse equal authority to manage and spend community personal property, but it requires written consent from the other spouse for gifts, for transfers of household furnishings and family clothing, and for advance notice before disposing of a community business. The same statute imposes a fiduciary duty of good faith that runs from the moment property is acquired until the community estate has been fully divided.
Equal Authority Over Community Personal Property
Under Section 1100(a), either spouse has management and control of community personal property with the same power to dispose of it as they would their own separate property.1California Legislative Information. California Code FAM 1100 – Management and Control of Community Personal Property Community personal property covers non-real-estate assets acquired during the marriage while the couple lived in California: bank accounts, brokerage holdings, vehicles, and household goods among them.2California Legislative Information. California Code FAM 760 – Community Property Defined
The practical effect is that either spouse can withdraw from a joint account, sell a jointly titled car, or trade stocks in a community brokerage account without checking in first. There is no veto over routine transactions. By the time you learn your spouse moved $50,000 out of savings, the money may already be gone. Protection comes from the consent requirements below and from the fiduciary duty, not from a permission requirement on day-to-day spending.
Transactions That Require the Other Spouse’s Written Consent
Section 1100 pulls three categories of transactions out of the equal-authority rule.
Gifts and Below-Value Transfers
A spouse cannot give away community personal property, or sell it for less than fair value, without written consent from the other spouse.1California Legislative Information. California Code FAM 1100 – Management and Control of Community Personal Property The rule blocks one spouse from draining the community through generosity or sweetheart deals with family or friends. Two things fall outside it: gifts the spouses make together, and gifts between the spouses themselves.
Household Furnishings and Family Clothing
A spouse also cannot sell, transfer, or place a lien on community personal property used as the family home, the home’s furniture and furnishings, or the clothing of the other spouse or the minor children, without written consent.1California Legislative Information. California Code FAM 1100 – Management and Control of Community Personal Property This protects the things inside the home and the dwelling itself when the dwelling is personal property, such as a mobile home. Community real estate used as the family home is governed by the joinder rules in Section 1102, not by Section 1100.
Selling or Encumbering a Community Business
When a business is all or substantially all community personal property, the spouse who runs it keeps day-to-day control. That spouse must, however, give the other spouse advance written notice before selling, leasing, or encumbering all or substantially all of the business’s personal property.1California Legislative Information. California Code FAM 1100 – Management and Control of Community Personal Property Failing to give notice does not void the sale or harm the buyer’s rights. Instead, the non-managing spouse’s remedy is a breach-of-duty claim under Section 1101.
The Fiduciary Duty Spouses Owe Each Other
Section 1100(e) imposes a fiduciary duty on every spouse who manages community assets and debts.1California Legislative Information. California Code FAM 1100 – Management and Control of Community Personal Property The standard is set by Section 721, which treats the marital relationship as one of personal confidence and demands “the highest good faith and fair dealing,” with neither spouse allowed to take unfair advantage of the other.3California Legislative Information. California Code FAM 721 – Fiduciary Relationship Between Spouses
In practice, the duty has three parts. Each spouse must disclose all material information about the existence, character, and value of community assets and debts. Each spouse must, on request, give the other access to whatever records exist about community property; the law does not require you to keep detailed books, but whatever books exist must be shared.3California Legislative Information. California Code FAM 721 – Fiduciary Relationship Between Spouses And any benefit or profit one spouse derives from a community transaction without the other’s consent must be accounted for and held in trust for the community.
The duty is continuous. It begins when community property is acquired and does not end until every community asset and liability has been divided, by agreement or by court order.1California Legislative Information. California Code FAM 1100 – Management and Control of Community Personal Property It survives separation and runs the entire length of a divorce case.
What a Spouse Can Do When the Duty Is Breached
Section 1101 lets an injured spouse sue for any breach that impairs their undivided one-half interest in the community estate. The breach can be a single transaction or a pattern.4California Legislative Information. California Code FAM 1101 – Claim for Breach of Fiduciary Duty You do not have to file for divorce to bring the claim. A Section 1101 action can stand alone during an intact marriage or be joined with a dissolution or legal separation case.
The court has several tools when a breach is proven:
- An accounting of all community property and debts, with determinations of ownership, classification, and access rights.4California Legislative Information. California Code FAM 1101 – Claim for Breach of Fiduciary Duty
- Reformation of title, adding the claimant spouse’s name to community property held solely in the other’s name.
- An award to the claimant spouse of 50 percent of any asset that was hidden or transferred in breach of duty, plus attorney’s fees and costs.
- An award of 100 percent of the asset’s value when the breach involves fraud, oppression, or malice.
For the 50 or 100 percent award, the court values the asset at whichever of three dates yields the highest number: the date of the breach, the date the asset was disposed of, or the date of the award itself.4California Legislative Information. California Code FAM 1101 – Claim for Breach of Fiduciary Duty The rule stops a breaching spouse from benefiting by depleting an asset or timing a sale badly before trial.
Where Title Reform Is Not Available
The court cannot reform title in four situations, where doing so would harm legitimate business or third-party interests:4California Legislative Information. California Code FAM 1101 – Claim for Breach of Fiduciary Duty
- A general partnership interest held by the other spouse.
- An interest in a professional corporation or professional association.
- An asset of an unincorporated business run only by the other spouse.
- Any other property where adding a name would harm a third party.
In these cases the monetary remedy still applies; only the title-reform tool is off the table.
Filing Deadline for a Breach Claim
A Section 1101 claim generally must be filed within three years from the date you actually learned about the transaction.4California Legislative Information. California Code FAM 1101 – Claim for Breach of Fiduciary Duty The clock runs from actual knowledge, not from when you should have known. If a spouse hid a transfer and you did not find out for five years, the three-year window opens on the discovery date.
Two exceptions matter. A claim raised with a divorce, legal separation, nullity action, or upon a spouse’s death is not subject to the three-year deadline. And even inside the three-year window, the breaching spouse can argue laches, meaning that unreasonable delay caused them prejudice. The Section 1101(a) remedies also apply only to transactions on or after July 1, 1987, except in a dissolution or death context.
When One Spouse Will Not or Cannot Consent
Sometimes a beneficial transaction stalls because one spouse refuses to consent without reason, or is unable to consent at all. Section 1101(e) lets the other spouse ask the court to dispense with the consent requirement if the proposed transaction is in the community’s best interest and consent has been arbitrarily refused or cannot be obtained because of the non-consenting spouse’s incapacity or prolonged absence.4California Legislative Information. California Code FAM 1101 – Claim for Breach of Fiduciary Duty
When a spouse has a conservator or entirely lacks legal capacity, Section 1103 redirects management and consent to the Probate Code’s conservatorship rules for both personal and real property.5California Legislative Information. California Code FAM 1103 – Management When Spouse Lacks Capacity The conservator then steps into the spouse’s place for approving gifts, sales, and encumbrances that would otherwise need consent.
What Section 1100 Does Not Cover
Two situations sit outside Section 1100 and often trip people up. Community real estate is governed by Section 1102, which requires both spouses to join in any instrument that sells, conveys, encumbers, or leases community real property for more than one year.6California Legislative Information. California Code FAM 1102 – Management and Control of Community Real Property A deed signed by only one spouse does not enjoy the same treatment as a one-spouse personal property transaction.
Once a dissolution, nullity, or legal separation petition is filed, the permissive management rule in Section 1100 tightens. Section 2040 imposes automatic temporary restraining orders that bar both spouses from transferring, encumbering, hiding, or disposing of any property, community, quasi-community, or separate, without written consent or a court order.7California Legislative Information. California Code FAM 2040 – Temporary Restraining Orders in Dissolution Proceedings Ordinary business and living expenses and payment of attorney’s fees for the case are allowed, but extraordinary spending requires five business days’ advance notice. Violations can lead to contempt sanctions and an unfavorable property division.