Legal Question in Real Estate Law in California

Your husband can file with the county recorders office a Quit Claim Deed transferring all of his interest in the property to you. You can obtain the proper form of Quit Claim Deed online fairly easily. Regarding taxes, it will depend on the county where the property is located whether a document needs to be completed for tax purposes. You should be exempt from tax in this situation.

Whether the transfer is a gift or not is a question of fact, not law. If someone gives you property of value without getting roughly equivalent value in return, it is a gift, whether the donor is your husband, your parent, your friend, or a complete stranger.

Family Code section 852(a) and (b) require that there be an express written declaration of intent to change the character of real property from, for example, the separate property of one spouse to the separate property of another. A clearly written quitclaim deed should suffice, especially if it reads something like this: "Intending to make a gift to XYZ, I, ABC, hereby transfer, remise and forever quitclaim unto XYZ all my right, title and interest in Blackacre, which is legally described as ........... (etc.)"

The tax aspects fall into maybe three separate categories: gift and estate, capital gains, and property. As to property taxes, I think interspousal transfers are exempt from reassessment, but as the previous answer points out, different California counties have differing paperwork requirements to be sure you are given the benefit of the exemption. I am less certain about capital gains, estate and gift taxes, all of which may be affected by this transaction depending upon what the ownership background of the house is/was, whether you file jointly or separately, etc., and I strongly recommend that you consult with a tax advisor with whom you can sit down together and submit to an interview in person.

Finally, I caution against making gifts to family members if there is an underlying purpose to shelter the property from one family member's creditors or potential creditors. Such transactions are fraudulent and if discovered (and most are) will end up with both the donor and the donee bearing civil responsibility for the fraud, and a court can un-do the transfer.