Creation of a Community Lien on Sole and Separate Property in Arizona
Creation of a Community Lien on Sole and Separate Property in Arizona
If you are going through a divorce, you may have heard about 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.
Community Lien on a Sole and Separate House
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.
Community Lien on a Sole and Separate Business
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.
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..
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.
The Arizona Court of Appeals spoke about community property liens and how to calculate the value of a community property lien in the case of Drahos v. Rens.
If you need information about a community lien on sole and separate property in Arizona, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Our Arizona divorce attorneys have decades 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.
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 Arizona divorce case around today.
Other Frequently Asked Questions on Sole and Separate Property and Liens in Arizona:
Does Arizona recognize sole and separate property?
Yes, Arizona recognizes sole and separate property as property acquired before marriage, property received as a gift or inheritance, and property acquired after a divorce or legal separation is file and served on the other spouse.
How do you overcome the presumption of community property in Arizona?
To overcome the presumption of community property you must prove by clear and convincing evidence the property was acquired before marriage, was a gift or inheritance, or was obtained after a divorce or legal separation was served on the other spouse. Clear and convincing evidence would include documentation or an admission of the other spouse.
Other Articles About Community Property in Arizona
- ARIZONA COMMUNITY PROPERTY LAWS
- CALCULATING A COMMUNITY LIEN ON AN APPRECIATING ASSET IN AN ARIZONA DIVORCE
- VALUING GOODWILL OF A LAWFIRM IN AN ARIZONA DIVORCE
- COMMUNITY PROPERTY AND ANNULMENT OF MARRIAGE IN ARIZONA
- SOLE AND SEPARATE FUNDS USED TO BUY A HOUSE IN ARIZONA
- DIVISION OF MILITARY RETIREMENT AND DISABILITY PAYMENTS IN AN ARIZONA DIVORCE
- SEPARATE PROPERTY CONTRIBUTIONS WHEN DIVIDING COMMUNITY PROPERTY IN ARIZONA
- PROPERTY HELD AS JOINT TENANTS WITH RIGHTS OF SURVIVORSHIP IN AN ARIZONA DIVORCE
- DIVIDING RETIREMENT ACCOUNTS IN AN ARIZONA DIVORCE
- ARIZONA DIVORCE DEBT
- EFFECT OF PLACING COMMUNITY PROPERTY INTO A FAMILY TRUST IN ARIZONA
- COMMUNITY PROPERTY LOTTERY WINNINGS IN ARIZONA
- IS SEPARATE PROPERTY LIABLE FOR COMMUNITY DEBT IN ARIZONA
- CREDITOR COLLECTING A SEPARATE DEBT WITH COMMUNITY PROPERTY IN ARIZONA
- TITLE AFFECTS COMMUNITY PROPERTY RIGHTS IN ARIZONA
- COMMINGLING SEPARATE PROPERTY WITH COMMUNITY PROPERTY IN ARIZONA
- ARE MILITARY RETIREMENT PAYMENTS COMMUNITY PROPERTY IN ARIZONA
- EFFORT DOES NOT ENTITLE A SPOUSE TO MORE COMMUNITY PROPERTY IN ARIZONA
- RESULT OF COMMINGLING COMMUNITY AND SEPARATE PROPERTY IN ARIZONA
- INCREASED VALUE OF A BUSINESS IN AN ARIZONA DIVORCE
- GIFT OF SEPARATE PROPERTY THROUGH A JOINT TENANCY DEED IN ARIZONA
- ABANDONMENT OF MARRIAGE AND COMMUNITY PROPERTY RIGHTS IN ARIZONA
- ARE PROFITS FROM A SEPARATE BUSINESS COMMUNITY OR SEPARATE PROPERTY
- TRACING SEPARATE PROPERTY COMMINGLED WITH COMMUNITY PROPERTY IN ARIZONA
- INTENTION CONTROLS TRANSMUTATION OF SEPARATE INTO COMMUNITY PROPERTY
- RECORDING A HOME IS INSUFFICIENT TO CHANGE SEPARATE PROPERTY INTO COMMUNITY PROPERTY
- COMMUNITY PROPERTY INTEREST IN A BUSINESS OWNED PRIOR TO MARRIAGE
- WHAT IS SEPARATE PROPERTY IN ARIZONA
- VALUATION AND DISTRIBUTION OPTIONS FOR A PENSION IN AN ARIZONA DIVORCE
- UNFAIR SEPARATION AGREEMENT IN ARIZONA
- UNEQUAL DIVISION OF PROPERTY IN A DIVORCE IN ARIZONA
- SEPARATE PROPERTY USED PURCHSE A HOME DURING MARRIAGE IN ARIZONA
- REIMBURSEMENT FOR PAYING SEPARATE DEBTS OF A SPOUSE IN ARIZONA
- REFUSAL TO SELL A HOUSE AFTER A DIVORCE IN ARIZONA
- PENSIONS AND DIVORCE IN ARIZONA
- MILITARY RETIREMENT PAY AND DIVORCE IN ARIZONA
- IS SEPARATE PROPERTY DIVIDED DIFFERENTLY THAN COMMUNITY PROPERTY IN ARIZONA
- IS ARIZONA A 50-50 STATE IN A DIVORCE
- IS ALL PROPERTY OWNED BY EITHER SPOUSE COMMUNITY PROPERTY IN ARIZONA
- INTEREST ON A LOAN BETWEEN SPOUSES IN ARIZONA
- IMPACT OF IMPROVEMENTS TO SEPARATE PROPERTY IN AN ARIZONA DIVORCE
- HOW TO ENFORCE DIVISION OF PROPERTY AND DEBT IN ARIZONA
- HOW TO DIVIDE PROPERTY IN ARIZONA WHEN A SPOUSE IS HIDING ASSETS
- HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE
- HOW IS COMMUNITY PROPERTY DIVIDED IN ARIZONA
- HOW ARE RETIREMENT ACCOUNTS DIVIDED IN AN ARIZONA DIVORCE
- FILING A LIS PENDENS IN A DIVORCE IN ARIZONA
- FAIR COMPENSATION DEFENSE IN AN ARIZONA DIVORCE
- ENFORCE A PROPERTY SETTLEMENT AGREEMENT IN ARIZONA
- DO RULES REGARDING PROPERTY APPLY TO DEBTS IN ARIZONA
- DIVISION OF DEBT IN AN ARIZONA DIVORCE
- DIVIDING PROPERTY NOT INCLUDED IN A DIVORCE DECREE IN ARIZONA
- DIFFERENCE IN COMMUNITY AND SEPARATE PROPERTY IN ARIZONA
- DETERMINING COMMUNITY VERSUS SOLE PROPERTY IN ARIZONA
- COMMUNITY PROPERTY LAWS ABOUT A SPOUSEāS PERSONAL GUARANTEE IN ARIZONA
- CHOOSING A VALUATION DATE WHEN DIVIDING ASSETS IN A DIVORCE IN ARIZONA
- CAN A SPOUSE BE HELD LIABLE FOR CREDIT CARD DEBT IN ARIZONA
- CALCULATING A COMMUNITY LIEN ON A DEPRECIATING ASSET IN ARIZONA
- EFFECT OF A DISCLAIMER DEED OR QUIT CLAIM DEED IN A DIVORCE IN ARIZONA
- BANK ACCOUNTS AND DIVORCE IN ARIZONA
- DIVIDING PAID TIME OFF IN A DIVORCE IN ARIZONA
- EQUALIZATION PAYMENTS IN AN ARIZONA DIVORCE
- OMITTED ASSETS IN AN ARIZONA DIVORCE DECREE
- CRSC PAY AND DIVORCE IN ARIZONA
- JUDGMENT FOR SEPARATE PROPERTY STOLEN DURING MARRIAGE
- JUDGE IGNORES A BUSINESS APPRAISAL IN AN ARIZONA DIVORCE
- REIMBURSEMENT OF SEPARATE PROPERTY IN A DIVORCE IN ARIZONA
- SEPARATE PROPERTY INCREASES IN VALUE DURING MARRIAGE IN ARIZONA
- PERSONAL INJURY AWARDS AND DIVORCE IN ARIZONA
- VALUING A BUSINESS IN A DIVORCE IN ARIZONA WITHOUT FINANCIAL DOCUMENTATION
- RETIREMENT INCREASE AFTER DIVORCE IN ARIZONA
- FAILURE TO DISCLOSE FINANCIAL INFORMATION IN A DIVORCE IN ARIZONA
- UNAUTHORIZED USE OF A POWER OF ATTORNEY TO DISPOSE OF SPOUSEāS SEPARATE PROPERTY
- COHABITATION AGREEMENTS IN ARIZONA
- FINANCIAL AGREEMENTS BETWEEN UNMARRIED COUPLES IN ARIZONA
- COMMUNITY PROPERTY LIABILITY EXISTS EVEN AFTER PROBATE ENDS
- WHEN A CREDITOR MAY TAKE SOLE AND SEPARATE ASSETS OF A SPOUSE
- LIABILITY FOR A SPOUSEāS NEGLIGENCE IN ARIZONA
- VALUATION OF STOCK HOLDINGS AND DEBT IN AN ARIZONA DIVORCE
- LOANS BEFORE MARRIAGE IN ARIZONA
- CREDITOR LIEN ON JOINT TENANCY PROPERTY IN AN ARIZONA DIVORCE
- INCREASE IN VALUE OF A SEPARATE PROPERTY BUSINESS STOCK IN AN ARIZONA DIVORCE
- STATEMENTS REGARDING PROPERTY ARE BINDING IN AN ARIZONA DIVORCE
- DEBTS NOT INCLUDED IN A DIVORCE DECREE IN ARIZONA
- FRAUDULENT QUIT CLAIM DEED IS INEFFECTIVE IN AN ARIZONA DIVORCE
- DISPOSITION OF COMMUNITY PROPERTY IN A LAST WILL AND TESTAMENT
- DIVIDING BUSINESS PROFITS DURING A DIVORCE IN ARIZONA
- MINORITY DISCOUNT IN A BUSINESS VALUATION IN AN ARIZONA DIVORCE
- HOW A BUSINESS IS DIVIDED IN A DIVORCE IN ARIZONA
- DIVISION OF CIVIL SERVICE RETIREMENT SYSTEM BENEFITS IN A DIVORCE IN ARIZONA
- DISABILITY PAY AND COMMUNITY PROPERTY IN ARIZONA
- VALUATION OF A PROFESSIONAL PRACTICE IN A DIVORCE IN ARIZONA
- JOINING A THIRD PARTY IN A DIVORCE IN ARIZONA
- CONTESTING A RULE 69 AGREEMENT WITHOUT A TRIAL IN ARIZONA
- DEFENSE TO REIMBURSEMENT FOR PAYMENT OF COMMUNITY BILLS IN AN ARIZONA DIVORCE
- SURVIVOR ELECTION AND MILITARY RETIREMENT IN AN ARIZONA DIVORCE
- DEFERRED MILITARY RETIREMENT IN AN ARIZONA DIVORCE
- DIVISION OF DEFERRED RETIREMENT OPTION PLANS IN AN ARIZONA DIVORCE
- CLAIMS OF WASTE IN AN ARIZONA DIVORCE
- DIVIDING ACCOUNTS RECEIVABLE IN A DIVORCE IN ARIZONA
- THE IMPORTANCE OF TITLE SEARCHES ON THE MARITAL HOME DURING A DIVORCE
- FRAUDULENT CONVEYANCE IN AN ARIZONA DIVORCE
- MINORITY DISCOUNT BUSINESS APPRAISAL IN AN ARIZONA DIVORCE
- FINDING A REALTOR DURING A DIVORCE IN ARIZONA
- MILITARY BENEFITS IN A DIVORCE IN ARIZONA
- WHAT TO DO IF YOUR SPOUSE IS HIDING ASSETS IN A DIVORCE IN ARIZONA
- TYPES OF BUSINESS APPRAISALS IN AN ARIZONA DIVORCE
- BENEFICIARY DESIGNATIONS AFTER DIVORCE IN ARIZONA
- RETIREMENT ACCOUNTS, QDROs, AND DIVORCE IN ARIZONA
- DIVORCE AND REFINANCING A MORTGAGE IN ARIZONA
- PROVING PROPERTY IS SOLE AND SEPARATE IN AN ARIZONA DIVORCE
- 7 REASONS YOU MAY HAVE TO SHARE YOUR INJURY SETTLEMENT IN AN ARIZONA DIVORCE
- PERSONAL INJURY SETTLEMENT IN A DIVORCE IN ARIZONA
- CLAIM OF A SPOUSEāS PERSONAL INJURY AWARD IN AN ARIZONA DIVORCE
- PERSONAL INJURY AWARDS AND DIVORCE SETTLEMENTS IN ARIZONA
- PROTECTING YOUR PERSONAL INJURY AWARD IN AN ARIZONA DIVORCE
- DIVORCE AND PERSONAL INJURY AWARDS IN ARIZONA
- ENFORCING A SURVIVOR BENEFIT ELECTION IN A PENSION IN ARIZONA
- MURDERER SPOUSE AND COMMUNITY PROPERTY IN ARIZONA
- DAMAGES CAUSED BY A COMMUNITY PROPERTY VEHICLE IN ARIZONA
- COMPENSATION FOR WASTE OF COMMUNITY ASSETS IN ARIZONA
- USING SEPARATE FUNDS TO BUY JOINT PROPERTY IN ARIZONA
- TRANSMUTING SEPARATE PROPERTY INTO COMMUNITY PROPERTY BY COMMINGLING
- LIABILITY FOR DEBT GUARANTEED BY THE OTHER SPOUSE IN ARIZONA
- USING COMMUNITY FUNDS TO PAY A MORTGAGE ON A SPOUSEāS SOLE AND SEPARATE HOUSE
- DISCLAIMER DEED AND DIVORCE IN ARIZONA
- COMMUNITY LIEN ON A SOLE AND SEPARATE BUSINESS IN A DIVORCE IN ARIZONA
- YOUāRE GETTING A DIVORCE, ARE YOU SURE YOU WANT THE HOUSE?
- CHANGING JOINT PROPERTY TO COMMUNITY PROPERTY IN ARIZONA
- SEGREGATING SEPARATE PROPERTY FROM COMMUNITY PROPERTY IN ARIZONA
- ARIZONA COMMUNITY PROPERTY LAWS FREQUENTLY ASKED QUESTIONS
About the Author: Christopher Hildebrand is an award-winning Arizona divorce and family law attorney with decades of experience with a law practice that has received numerous awards including “US News and World Report Best Law Firms”, “Top Family Law Attorney” from North Valley magazine, “Best of the Valley Family Law Attorneys” from Arizona Foothills Magazine, “Preeminent Attorney AV Rated” attorney from Martindale-Hubbell, and many others.