Table of Contents
Many people ask can a spouse be held liable for credit card debt in Arizona. Both spouses are equally liable for credit card debt incurred during the marriage regardless of whose name is on those credit cards and regardless of whether the other spouse was even aware of the credit card debt.
Liability for Community Property Debts
These debts are considered community property debts and both spouses are equally liable for those credit card debts.
Liability Exceptions for Community Debts Due to a Prenuptial Agreement
Several exceptions, however, apply to this general rule such as when the parties had a prenuptial agreement stating otherwise and a notice of the existence of that prenuptial agreement was recorded with the county recorder’s office before the debts were incurred. This would eliminate a spouse’s liability for his or her spouse’s credit card debt.
Liability Exception for Community Debts Based on a Claim of Waste
Another exception to a spouse’s liability for credit card debt is if one spouse can establish the spending on credit cards constitute waste, which means the spending was not done for the benefit of the community, such as excessive gambling.
Liability Exception for Debts Incurred Before Marriage or After Service of Process
Lastly, any debts, including credit card debts, incurred prior to marriage or after the service of the Petition for Dissolution of Marriage or service of the Petition for Legal Separation will, generally, be the sole and separate obligation incurring the obligation.
An exception to this rule exists if the charges on the credit cards after service of the initial divorce or legal separation were on purchases used to preserve a community property asset.
Liability of a Spouse for Credit Card Debt in Arizona
The Arizona Court of Appeals recently reaffirmed a limit on creditors seeking collection of a premarital debt from the marital community.
In SPQR Venture, Inc., v. Robertson, No. 1 CA-CV 14-0341 (App. 2015), Wife incurred debt during a prior marriage.
The judgment against the Wife was renewed several times.
After Wife remarried, the creditor came calling, urging that the premarital debt could be collected against the community property of Wife and new Husband.
Upon remarriage, the Wife became a stay-at-home mother, caring for her five children.
The husband provided the sole household income.
The creditor argued that because Wife had foregone her previous employment to fulfill her current role in the new marital community, Wife made a contribution to the community the monetary equivalent of which could then be drawn from community income to satisfy her premarital debt.
Creditor relied on Arizona Revised Statutes §25-215. Section 25-215, “Liability of community property and separate property for the community and separate debts,” states in pertinent part:
B. The community property is liable for the premarital separate debts or other liabilities of a spouse, incurred after September 1, 1973, but only to the extent of the value of that spouse’s contribution to the community property which would have been such spouse’s separate property if single.
Creditor focused on the words “to the extent of the value of that spouse’s contributions to the community property” to advance its effort.
It argued that the Wife provided a quantifiable if non-financial, the value that should open the marital community income to a collection.
Wife and Husband argued that Creditor ignored the balance of the statute that provides that the community is liable “only to the extent” a financial contribution “would have been such spouse’s separate property if single.”
The trial court agreed with Wife and Husband, as did the Court of Appeals.
The Court of Appeals found no authority permitting a collection against the income of a non-debtor spouse for the “value” of a debtor’s nonfinancial services to the community.
In other words, A.R.S. §25-215(B) precludes the assignment of a non-debtor spouse’s income or wages to satisfy a separate premarital debt of the other spouse.
Thus, the Husband was protected against liability for Wife’s premarital debt, even when it was uncontested that Wife provided a service to her family that had value and for which the community would otherwise need to pay.
If you have questions about if a spouse can be held liable for credit card debt in Arizona, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Our Arizona community property and family law attorneys have over 100 years of combined experience successfully representing clients in community property and family law cases.
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.
Call us today at (480)305-8300 or reach out to us through our appointment scheduling form to schedule your personalized consultation and turn your community property or family law case around today.
Common Questions About This Article
Is a Wife Responsible for Her Husband’s Debts in Arizona?
Unless you have a prenuptial agreement stating otherwise, debts incurred during marriage for the benefit of either or both of the spouses are considered to be community debt. A judge will typically divide a community debt equally between the spouses. This would mean a wife is responsible for her husband’s debts in Arizona.
There are exceptions to this rule, such as when a spouse incurs a debt related to his or her sole and separate asset in which case the wife would not be responsible for her husband’s debts incurred for the benefit of his sole and separate property.
Other Articles About Community Property in Arizona
- UNEQUAL DIVISION OF PROPERTY IN A DIVORCE IN ARIZONA
- DIVIDING PROPERTY NOT INCLUDED IN DIVORCE DECREE IN ARIZONA
- EFFECT OF COMMUNITY PROPERTY LAWS ON A PERSONAL GUARANTY IN ARIZONA
- DIVISION OF PENSIONS IN AN ARIZONA DIVORCE
- DIVISION OF DEBT IN AN ARIZONA DIVORCE
- MILITARY RETIREMENT PAY AND DIVORCE IN ARIZONA
- INTEREST ON A LOAN BETWEEN SPOUSES IN AN ARIZONA DIVORCE
- IMPROVEMENTS TO SEPARATE PROPERTY IN AN ARIZONA DIVORCE
- ENFORCING A PROPERTY SETTLEMENT AGREEMENT IN AN ARIZONA DIVORCE
- DETERMINING COMMUNITY VERSUS SOLE AND SEPARATE PROPERTY IN ARIZONA
- FAIR COMPENSATION DEFENSE IN AN ARIZONA DIVORCE
- EFFECT OF A DISCLAIMER DEED OR QUITCLAIM DEED IN A DIVORCE IN ARIZONA
- ENFORCE DIVISION OF PROPERTY AND DEBT IN AN ARIZONA DIVORCE
- HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE
- HOW RETIREMENT ACCOUNTS ARE DIVIDED IN AN ARIZONA DIVORCE
- HOW IS COMMUNITY PROPERTY DIVIDED IN ARIZONA
- IS SEPARATE PROPERTY DIVIDED DIFFERENTLY THAN COMMUNITY PROPERTY IN ARIZONA
- DIFFERENCE BETWEEN COMMUNITY AND SEPARATE PROPERTY IN ARIZONA
- WHAT IS CONSIDERED TO BE SEPARATE PROPERTY IN ARIZONA
- IS ALL PROPERTY OWNED BY EITHER SPOUSE COMMUNITY PROPERTY IN ARIZONA
- DO RULES REGARDING PROPERTY APPLY TO DEBTS IN ARIZONA
- WHAT HAPPENS WHEN SEPARATE PROPERTY IS USED TO PURCHASE A HOME DURING MARRIAGE IN ARIZONA
- COMMUNITY LIEN ON SOLE AND SEPARATE PROPERTY IN ARIZONA
- HOW TO DIVIDE PROPERTY IN ARIZONA WHEN A SPOUSE IS HIDING ASSETS
- IS ARIZONA A 50 50 STATE IN A DIVORCE
- UNFAIR SEPARATION AGREEMENT IN ARIZONA
- VALUATION AND DISTRIBUTION OPTIONS FOR A PENSION IN AN ARIZONA DIVORCE
- FILING A LIS PENDENS IN A DIVORCE IN ARIZONA
- COMMUNITY PROPERTY LIEN ON A DEPRECIATING ASSET IN ARIZONA
- REIMBURSEMENT FOR PAYING SEPARATE DEBTS OF A SPOUSE IN ARIZONA
- REFUSAL TO SELL A HOUSE AFTER A DIVORCE IN ARIZONA
- EFFECT OF MILITARY BENEFITS ON A DIVORCE IN ARIZONA
- VALUING GOODWILL OF A LAW FIRM IN AN ARIZONA DIVORCE
- EFFECT OF A DISCLAIMER DEED ON COMMUNITY PROPERTY RIGHTS IN A DIVORCE IN ARIZONA
- EFFECT OF USING SOLE AND SEPARATE FUNDS USED TO BUY A HOUSE IN ARIZONA
- DIVISION OF MILITARY RETIREMENT AND DISABILITY PAYMENTS IN AN ARIZONA DIVORCE
- WHEN SEPARATE PROPERTY IS USED TO BUY COMMUNITY PROPERTY IN ARIZONA
- WHAT HAPPENS WHEN ASSETS ARE NOT DIVIDED IN AN ARIZONA DIVORCE DECREE
- PROPERTY HELD AS JOINT TENANTS WITH RIGHTS OF SURVIVORSHIP IN A DIVORCE IN ARIZONA
- SEGREGATING SEPARATE FROM COMMUNITY PROPERTY IN ARIZONA
- TRANSMUTING SEPARATE INTO COMMUNITY PROPERTY IN ARIZONA
- TRACING SEPARATE PROPERTY IN AN ARIZONA DIVORCE
- REIMBURSEMENT OF SEPARATE PROPERTY IN ARIZONA
- COMMUNITY LIABILITY FOR SEPARATE DEBTS IN ARIZONA
- STATEMENTS ON PROPERTY ARE BINDING IN AN ARIZONA DIVORCE
- DIVIDING RETIREMENT ACCOUNTS IN A DIVORCE IN ARIZONA
- SELLING A HOUSE DURING A DIVORCE IN ARIZONA
- CRSC PAY AND DIVORCE IN ARIZONA
- JUDGMENT FOR SEPARATE PROPERTY STOLEN DURING MARRIAGE IN ARIZONA
- JUDGE IGNORES A BUSINESS APPRAISAL IN AN ARIZONA DIVORCE
- MINORITY DISCOUNT IN A BUSINESS APPRAISAL IN AN ARIZONA DIVORCE
- WHAT HAPPENS TO PERSONAL INJURY AWARDS IN A DIVORCE IN ARIZONA
- REIMBURSEMENT OF SEPARATE PROPERTY IN A DIVORCE IN ARIZONA
- THE VALUATION OF A LAW PRACTICE IN A DIVORCE IN ARIZONA
- COMMUNITY PROPERTY LOTTERY WINNINGS IN ARIZONA
- IMPACT OF FILING A HOMESTEAD ON SEPARATE PROPERTY IN ARIZONA
- SEPARATE PROPERTY INCREASES IN VALUE DURING MARRIAGE IN ARIZONA
- DIVIDING CONTINGENCY FEES IN A DIVORCE IN ARIZONA
- EFFECT OF POSTNUPTIAL AGREEMENT ON CREDITORS IN ARIZONA
- EFFECT OF A PRENUPTIAL AGREEMENT ON CREDITORS IN ARIZONA
- VALUING A BUSINESS IN ARIZONA DIVORCE WITH NO FINANCIAL DOCUMENTS
- UNAUTHORIZED USE OF A POWER OF ATTORNEY IN ARIZONA
- EFFECT OF PLACING COMMUNITY PROPERTY INTO A FAMILY TRUST IN ARIZONA
- WHAT HAPPENS TO AN INCREASE IN RETIREMENT BENEFITS AFTER A DIVORCE
- FAILURE TO DISCLOSE FINANCIAL INFORMATION IN ARIZONA
- AWARD OF MONEY IN AN ARIZONA DIVORCE
- INTEREST ON A JUDGMENT IN AN ARIZONA DIVORCE DECREE
- SANCTIONS FOR COMPELLING LATE DISCOVERY IN ARIZONA
- PREMARITAL AGREEMENTS AND CREDITORS IN ARIZONA
- INTEREST ON A JUDGMENT IN AN ARIZONA DIVORCE DECREE
- FRAUDULENT QUITCLAIM DEED IN AN ARIZONA DIVORCE
- WHAT HAPPENS TO DEBTS NOT INCLUDED IN A DIVORCE DECREE IN ARIZONA
- IS SEPARATE PROPERTY LIABLE FOR COMMUNITY DEBT IN ARIZONA
- EFFECT OF COMMINGLING SEPARATE AND COMMUNITY PROPERTY IN ARIZONA
- EFFORT DOES NOT ENTITLE A SPOUSE TO MORE COMMUNITY PROPERTY IN ARIZONA
- COMMUNITY PROPERTY INTEREST IN A BUSINESS OWNED PRIOR TO MARRIAGE
- WHAT HAPPENS TO LOANS BEFORE MARRIAGE IN ARIZONA
- TITLE AFFECTS COMMUNITY PROPERTY RIGHTS IN ARIZONA
- LIABILITY FOR A SPOUSE’S NEGLIGENCE IN ARIZONA
- CREDITOR COLLECTING A SEPARATE DEBT WITH COMMUNITY PROPERTY IN ARIZONA
- VALUATION OF STOCK HOLDINGS AND DEBT IN AN ARIZONA DIVORCE
- COMMUNITY PROPERTY LIABILITY EXISTS EVEN AFTER PROBATE ENDS
- CAN A CREDITOR TAKE SOLE AND SEPARATE ASSETS IN ARIZONA
- IMPACT ON THE INCREASED VALUE OF A BUSINESS IN AN ARIZONA DIVORCE
- PROFITS FROM SOLE AND SEPARATE BUSINESS IN AN ARIZONA DIVORCE
- EFFECT OF COMBINING COMMUNITY AND SEPARATE PROPERTY IN ARIZONA
- ABANDONMENT OF MARRIAGE AND COMMUNITY PROPERTY RIGHTS IN ARIZONA
- EFFECT OF AN INCREASE IN SEPARATE BUSINESS STOCK IN AN ARIZONA DIVORCE
- VALUING A PENSION PLAN IN A DIVORCE IN ARIZONA
- GIFT OF SEPARATE PROPERTY BY ISSUING A JOINT TENANCY DEED IN ARIZONA
- CREDITOR LIEN ON JOINT TENANCY PROPERTY IN AN ARIZONA DIVORCE
- FAILURE TO PROVIDE EVIDENCE OF THE VALUE OF PROPERTY IN AN ARIZONA DIVORCE
- MILITARY RETIREMENT PAYMENTS IN AN ARIZONA DIVORCE
- JOINT TENANCY PROPERTY IN AN ARIZONA PROBATE
- CHANGING JOINT PROPERTY INTO COMMUNITY PROPERTY IN ARIZONA
- DISPOSITION OF COMMUNITY PROPERTY IN A LAST WILL AND TESTAMENT
- COMMUNITY LIEN IN A SOLE AND SEPARATE BUSINESS IN A DIVORCE IN ARIZONA
- COMMUNITY FUNDS PAID ON A SOLE AND SEPARATE HOUSE IN ARIZONA
- TRANSMUTING SEPARATE PROPERTY INTO COMMUNITY PROPERTY BY COMMINGLING IN ARIZONA
- COMMUNITY LIABILITY FOR DEBT GUARANTEED BY SPOUSE IN ARIZONA
- SEPARATE FUNDS TO BUY JOINT PROPERTY IN ARIZONA
- COMPENSATION FOR WASTE OF COMMUNITY ASSETS IN AN ARIZONA DIVORCE
- DAMAGE CAUSED BY A COMMUNITY PROPERTY VEHICLE IN ARIZONA
- WHAT TO DO WHEN A SPOUSE IS HIDING ASSETS IN A DIVORCE IN ARIZONA
- OPTIONS FOR BUSINESS OWNERS GOING THROUGH A DIVORCE IN ARIZONA
- MURDERER SPOUSE & COMMUNITY PROPERTY IN ARIZONA
- ENFORCING A SURVIVOR BENEFIT ELECTION IN A PENSION IN A DIVORCE IN ARIZONA
- DIVORCE AND PERSONAL INJURY AWARDS IN ARIZONA
- INJURY AWARDS AND DIVORCE SETTLEMENTS IN ARIZONA
- PROTECT YOUR PERSONAL INJURY AWARD IN AN ARIZONA DIVORCE
- CLAIM OF SPOUSE’S PERSONAL INJURY AWARD IN AN ARIZONA DIVORCE
- PROVING WHAT IS SOLE AND SEPARATE PROPERTY IN AN ARIZONA DIVORCE
- VALUING A HOUSE DURING A DIVORCE IN ARIZONA
- DEFERRED RETIREMENT OPTION PLANS IN AN ARIZONA DIVORCE
- 7 REASONS WHY YOU MIGHT HAVE TO SHARE YOUR PERSONAL INJURY SETTLEMENT IN ARIZONA DIVORCE
- PERSONAL INJURY SETTLEMENT IN A DIVORCE IN ARIZONA
- IMPACT OF TAXES IN A DIVORCE SETTLEMENT IN ARIZONA
- DIVORCE AND REFINANCING A MORTGAGE IN ARIZONA
- RETIREMENT ACCOUNTS, QDROS, AND DIVORCE IN ARIZONA
- TYPES OF BUSINESS APPRAISALS IN A DIVORCE IN ARIZONA
- HEARING TO CONTEST RULE 69 AGREEMENT IN ARIZONA
- HOW TO DEAL WITH A FRAUDULENT CONVEYANCE IN ARIZONA DIVORCE
- PROPERTY EQUALIZATION PAYMENTS IN AN ARIZONA DIVORCE
- TITLE SEARCH ON HOME DURING DIVORCE IN ARIZONA
- DIVIDING ACCOUNTS RECEIVABLE IN AN ARIZONA DIVORCE
- CLAIMS OF WASTE IN AN ARIZONA DIVORCE
- BANK ACCOUNTS AND DIVORCE IN ARIZONA
- REIMBURSEMENT FOR PAYING BILLS IN ARIZONA DIVORCE
- DEFERRED MILITARY RETIREMENT PAY AND DIVORCE IN ARIZONA
- SURVIVOR ELECTION AND MILITARY RETIREMENT IN ARIZONA
- DEFENSE TO REIMBURSEMENT FOR PAYING BILLS IN A DIVORCE IN ARIZONA
- CSRS BENEFITS AND DIVORCE IN ARIZONA
- DIVIDING A PROFESSIONAL PRACTICE IN A DIVORCE IN ARIZONA
- IMPACT OF DISABILITY PAY ON COMMUNITY PROPERTY RIGHTS IN ARIZONA
- COMMUNITY PROPERTY AND ANNULMENT OF MARRIAGE IN ARIZONA
- DEFINITIVE GUIDE TO DIVIDING A BUSINESS IN A DIVORCE IN ARIZONA
- DIVIDING BUSINESS PROFITS DURING A DIVORCE IN ARIZONA
- MINORITY DISCOUNT IN A BUSINESS VALUATION IN AN ARIZONA DIVORCE
About the Author: Chris Hildebrand has over 26 years of Arizona family law experience and received awards from US News and World Report, Phoenix Magazine, Arizona Foothills Magazine and others. Visit https://www.hildebrandlaw.com.
Leave a Reply