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Creditor Takes Sole and Separate Assets in AZ | Hildebrand Law, PC

Tue 12th Jul, 2016 Arizona Community Property Laws

In Majewski v. Eyre, 542 P.2d 1123 (1975), the Court of Appeals considered a wife’s liability for a debt. Mrs. Majewski and Mr. Majewski married in 1955 and divorced in 1972. In 1966, the wife and husband entered into two separate agreements.

First, they borrowed $15,000 from Mr. Andreatos and signed a promissory note to him in that amount. Second, they signed an agreement to buy a restaurant from a Mr. and Mrs. Eyre, husband and wife.

Two years later, Mr. Andreatos sued Mr. Majewski and Mrs. Majewski on the promissory note. The court entered judgment in Mr. Andreatos’ favor.

In 1969, The Eyres sued the Majewskis. The court entered judgment in favor of the Eyres.

In 1972, the court issued general writs of executions in both cases against Mr. and Mrs. Majewski. The Majewski’s asked the court to quash those writs of general executions, but the court refused.

From that decision, the Majewskis appealed.

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Community Property

The creditors executed on a house and a hotel that was the sole property of Mrs. Majewski. That property did not benefit at all from the loan or the agreement she signed.

Mrs. Majewski claims that the creditors could not execute on her sole property for the separate debt of her husband. Many Arizona cases support that position.

However, the Supreme Court of Arizona noted that Mrs. Majewski confused facts by inserting community property issues into the case.

The Court said that her liability stemmed from signing the note and agreement. When a person signs an agreement or a note in Arizona, that person is individually responsible for the obligations.

By signing the notes, Mrs. Majewski became personally liable for the transactions.

The Court said the wife signed the note and the agreement with her husband. They then became jointly liable with both the community property, as well as the separate property, of the husband and wife may be reached in satisfaction of the debt.

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Conclusion

The Arizona Supreme Court affirmed the ruling of the lower court. It agreed that Mr. Andretos and the Eyres could go after Mrs. Majewski’s separate property for notes and agreements that she had signed.

If you need information about when a creditor may take sole and separate assets of a spouse in Arizona, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Our Arizona divorce attorneys have over 100 years of combined experience successfully representing clients in divorce cases in Arizona.

Our family law firm has earned numerous awards such as US News and World Reports Best Arizona Family Law Firm, US News and World Report Best Divorce Attorneys, “Best of the Valley” by Arizona Foothills readers, and “Best Arizona Divorce Law Firms” by North Scottsdale Magazine.

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