§7.08 Presumption of Undue Influence

When an interspousal transfer benefits or "advantages" one spouse, there is a presumption that the transaction was induced by undue influence. [See Marriage of Bonds (2000) 24 C4th 1, 28.] The burden is on the benefited spouse to dispel the presumption. That spouse must prove by preponderance of the evidence that the transaction was freely and voluntarily entered into, with full knowledge of all the facts and a complete understanding of the transfer's effect. [Marriage of Haines (1995) 33 CA4th 277, 296, 297.]

This presumption prevails over the EC §662 presumption in favor of record title because of the policy of protecting spouses and because the undue influence presumption is more specific. [Marriage of Delaney (2003) 111 CA4th 991, 996–998; see §2.02.] This presumption may apply to undo a transmutation that was so grossly one-sided and unfair as to be the product of undue influence. It does not apply, however, to establish a transmutation that fails to comply with FC §852(a). [See §7.02.] Absent a transmutation by an express declaration, there is no basis for applying the presumption of undue influence. [Marriage of Benson (2005) 36 C4th 1096, 1111–1112.]