Originally Posted by
Jim3k
The way I have used the term 'characterization agreement' here is pretty much exclusive to community property states. Husband and wife agree to characterize their holding(s) in a manner different from the presumption of community property.
The article was imprecise. Pre-nups are similar, though. They are marriage agreements which control the distribution of property on divorce, no matter what the state law says absent such an agreement. They, too, are binding. Community property characterization agreements, OTOH, can be entered into or modified after the marriage.
Community property means one spouse cannot sell even part of the other spouse's half share without consent. It also means that on a spouse's death, the survivor gets half the community, no matter what the decedent's will might say. The decedent can only distribute his/her separate property as s/he wishes -- by will or pre-death gift. On that spouse's death, separate property can be distributed by will or trust; if he's intestate, the state does provide a scheme for its distribution, the same as in a non-community property state.
And, of course, titled property (real estate, car, common stock, bank account, and anything you choose to put a title on) is held per the terms of the title. Even so, they only create presumptions which can be rebutted.