What is a Community Lien on Sole and Separate Property in Arizona?
Arizona rulings have recognized the community may gain a community property lien against the sole and separate property of a spouse if either spouse, through labor, effort, or payment of community money, increasing the value of a spouse’s sole and separate property or reduces the debt associated with that separate property.
One common example we see occurs when the parties choose to live in a home owned by one spouse before marriage; thereby making that house the sole and separate property of the spouse who owns it.
However, the parties begin investing community money to make improvements to the home and to pay the monthly mortgage.
The community, therefore, may have a community lien against the home to the extent such improvements increased the value of the home or decreased the mortgage balance owing on the home.
The second most common example of the creation of a community lien is when one spouse owns a business before marriage, and the value of that business increases during the marriage due to the labors of either or both spouses or the investment of money into the business.
The community, therefore, may have a lien against the business for income held within the business and the increase in the market value of the business.
There is, however, an argument to counter the community lien claim, which is to argue the community had already been fairly compensated during the marriage to the extent of the amount the court calculates the community lien to be.
You may want to read a more in-depth article we wrote about the Arizona Court of Appeals case of Rowe v. Rowe.
The community may also have a community lien against the property, such as a home or business, owned by one of the spouses as his or her sole and separate property even if that property decreased in value during the Marriage.
You should read our in-depth discussion of that Arizona Court of Appeals’ decision in the Potthoff v. Potthoff case.
The Arizona Court of Appeals in the Evans v. Evans case addressed the particular issue of whether profits earned during the marriage from a sole and separate business are community or separate property.
The decision rests upon how much of the profits were due to the labors of either spouse.
Contact Our Scottsdale Arizona Community Property Attorneys
Call us at (480)305-8300 to schedule a consultation with one of our Scottsdale Arizona Community Property Attorneys regarding Arizona community property laws or any other Arizona family law matter.
Other Articles About Community Property in Arizona
- Community Lien in Arizona
- Community Liens Separate Property in Arizona
- Community Property and Personal Guaranty in Arizona
- Determining Community Versus Sole Property in Arizona
- The difference Between Community and Separate Property in Arizona
- Disclaimer Deed in a Divorce in Arizona
- Divide Retirement Accounts in an Arizona Divorce
- Dividing Property Not Included in Divorce Decree in Arizona
- Division of Debt in an Arizona Divorce
- Do Rules Regarding Property Apply to Debts in an Arizona Divorce
- Enforce Division of Property and Debt in an Arizona Divorce
- Enforcing a Property Settlement Agreement in Arizona
- Filing a Lis Pendens in a Divorce in Arizona
- How is Property Divided in a Divorce in Arizona
- How to Divide Property in Arizona When a Spouse is Hiding Assets
- Is All Property Community Property in Arizona
- Is Arizona a 50 50 State in a Divorce
- Is Separate Property Divided in Arizona Divorce
- Marital Property Laws in Arizona
- Military Retirement Pay and Divorce in Arizona
- Pensions and Divorce in Arizona
- Separate Property Used to Purchase a Home During Marriage in Arizona
- Sole and Separate Property Divorce Arizona
- Is a Spouse Liable for Credit Card Debt in Arizona
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- Stock Options in an Arizona Divorce
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- Valuation and Distribution Options For Pensions in an Arizona Divorce
- What is Community Property in Arizona
- What is Separate Property in Arizona
Chris Hildebrand wrote the information on this page about community liens on sole and separate property in Arizona to ensure everyone has access to information about community property laws in Arizona. Chris is a family law attorney at Hildebrand Law, PC. He has over 24 years of Arizona family law experience and has received multiple awards, including US News and World Report “Top Arizona Divorce Attorneys”, Phoenix Magazine “Top Divorce Law Firms”, and Arizona Foothills Magazine “Best of the Valley” award. He believes the policies and procedures he uses to get his clients through a divorce should all be guided by the principles of honesty, integrity, and actually caring about what his clients are going through.