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Creditor Collecting a Separate Debt With Community Property in Arizona

Item: Hildebrand Law, PC
Rating: 5
Author: Chris Hildebrand

Posted on : July 11, 2016, By: Chris Hildebrand

Community Liability for a Spouse's Debt in Arizona.

Creditor Collecting a Separate Debt With Community Property in Arizona

Many people have a question about community liability for a spouses’ debt in Arizona. Specifically, can an Arizona couple’s community property be taken in payment of a debt made separately by the husband? What if the husband incurred the debt in a non-community property state? In Bainum v. Roundy, 521 P.2d 633 (Ariz. Ct. App. 1974), the 9th Circuit Court of Appeals considered these issues.

Husband (Mr. Bainum) and Wife (Mrs. Bainum) were married and lived in Arizona, a community property state. Husband owed Mr. Roundy money for a stock sale in Utah. He signed a promissory note for the debt. Mr. Roundy sued on the promissory note in Arizona. The trial court entered judgment in his favor against both Mr. Bainum and his Wife. The Bainum’s appealed.

The action against Mr. Bainum was filed after the limitations period had passed. The suit would normally be dismissed on this basis. However, Arizona law extends the time when a debtor acknowledges the debt in writing and promises to pay. In this case, the trial court found Husband had acknowledged the debt in a letter to Mr. Roundy. Mr. Bainum wrote: “I am sure we can reach an understanding in a satisfactory arrangement for the repayment of my note.”

Debts of a Spouse and Community Property Laws

The trial court ruled that this letter was a signed, written acknowledgment of the debt. As such, it extended the time to file suit. The Court of Appeals agreed. Husband objects to the fact that the judgment was against his Wife, as well as himself. He argues that she could not be held responsible for the debt. He alone executed the promissory note and did so in a non-community property state.

Community Liability for a Spouse's Debt in Arizona.

However, the Court of Appeals said that the judgment did not impose liability on the Wife. Rather, it subjected the community (composed of Mr. Bainum and Mrs. Bainum) to the debt. In Arizona, the execution of a note by the husband usually binds the community. The question here is whether the Husband incurred the debt in a non-community property state.

The Court of Appeals reviewed case law from other jurisdictions. It found that under Utah law, the Husband’s debt would subject the couple’s community property to payment, not Wife’s separate property. Therefore it ruled that Mr. Bainum’s and Mrs. Bainum’s community property is subject to the debt involved in this litigation. The Court of Appeals affirmed the judgment below.

If you need information about liability for a spouse’s debts 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.

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.

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Hildebrand Law, PC

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Annie Goodwin

16:50 18 Sep 20

Chris Hildebrand was an excellent consult regarding an estate matter for my Montana client who owns property in Arizona. Chris was knowledgeable and responsive to my inquiry. My office has an wonderful resource in Arizona!

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06:14 21 Aug 20

Kip Micuda is an amazing attorney who always made me feel protected. I highly recommend Kip. He is extremely knowledgeable and professional. Could not be happier.

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01:24 10 Apr 20

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Was great source of information in regard to Arizona family law. Promptly responded to messages with accurate information. Highly recommend.

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06:45 21 Dec 19

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Michael Gerity

19:25 22 Nov 19

Chris Hildebrand is an experienced and knowledgeable attorney who does well both in and out of the courtroom. My experience with Chris is that he's a strong advocate for his clients and a knowledgeable attorney. I never hesitate to recommend him for any legal matter.

Jerry Thompson

14:17 03 Oct 19

Very professional, kind and understanding.

Michelle Harrington

20:54 24 Jul 19

I hired Michael Clancy just when I was about to give up on an existing post-decree case which I started with a different attorney over a year ago. Michael is knowledgeable, upfront and personable; he gave me the confidence to continue and settle my post decree case. I knew he was secure, capable and could handle my case and represent me well. He did everything he could to ensure a great outcome for the modification of my current court orders to help my son have a more stable mental, social and physical well-being, which to me is priceless! I would highly recommend him to anyone who wants to be in the best possible hands during one of the most stressful events that could happen to any parent that wants the best for their child/children. Thank you Michael for fighting for my son's safety!! Also, his paralegal, Alison, was awesome and very helpful!

Shari Abbit

21:15 12 Apr 19

HIGHLY RECOMMEND! Cannot say enough wonderful things about my experience with Hildebrand Law. I have been working with Chris and the firm for about 6 years now, and I always feel like my concerns, issues and questions are addressed in a thorough and timely manner. They definitely have my best interests at heart. I recommend Chris whenever anyone asks me who I used as my divorce attorney. Great firm and great results!

Shari Abbit

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Brandi Slaybaugh

13:11 05 Apr 19

Compassionate and patient and helped so much. The best attorney I've ever dealt with. Nothing but good things to say about Chris. So grateful.

Rick Cabral

23:23 22 Jan 19

Chris Hildebrand is one of the sharpest and effective attorneys that I have encountered in my 27 years of business. Doing business on the East Coast, as well as Southern California and Arizona has afforded me countless opportunities to work with legal minds from various parts of the country. Needless to say, Chris is by far one of the most honest, intelligent and street smart attorneys I have encountered. I have referred a number of people to Chris and everyone has been fully satisfied. 100% recommend him!

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02:57 18 Jan 19

This is not only a great law firm that cares about their clients but also the results they get for their clients. Great people and attorneys, I highly recommend this firm!

Richard Sipan

23:51 18 Oct 18

I first should comment on how I found this law firm. I am an attorney myself, though never licensed in Arizona. I moved to Arizona to rejoin my wife and son, who had moved out to Arizona ahead of me. Things soured. I don't know why, but they did. There was a particular issue for me with inherited property. I did some basic Internet research, and Hildebrand's name kept coming up as the author of scholarly articles on the issue concerning me. I asked that Hildebrand be assigned to my case. This was not possible, but his second in command, Mr. Micuda, took over, and Mr. Micuda knows his business. The initial scheduled 1 hour meeting ran for an hour and 45 minutes, and facts, law, and strategy were fully discussed. Throughout the case, everything was explained to me clearly, both verbally and in writing. Proceedings went forward without delay. Because I had selected one of the most prominent Domestic Relations firms in town, there was no serious opposition. This ended up being an essentially co-operative divorce between the two sides, the reasoning being to conserve assets rather than enrich lawyers. Through a series of 3 or 4 payments, I put up about $10,000 for fees and costs. I found the Hildebrand law firm's billings to be fair. They billed for work done; no padding. I am getting about 25% of what I paid in back, as a refund. The matter was done in about 6 months: divorce, agreed property settlement, agreed support provisions as to my son. My matters were handled by an attorney and paralegal team, and handled efficiently. Mine was not a "big" case in terms of its economic value to anyone, but I did not feel like a second or third class citizen; I was treated with the same respect, even though the dispute was over a condo, as opposed to, say, a Scottsdale mansion with land. This may sound strange, but i was actually somewhat sorry that the matter had to come to a conclusion. I felt that I had been treated like a friend, not just an anonymous customer. Being a practical man, I realize it's down to sending a Christmas or other seasonal card. As I said at the outset, I found this place by dint of my own research. I feel I am a lucky man that I did.

Jim Caryl

22:53 26 Jul 18

I interviewed several firms and selected Hildebrand Law for my difficult military divorce as a direct result of their whole family concern and integrity. During the interview process the professionals at Hildebrand Law were as concerned for the well being of my children as I was and ensured that they presented several options along the way to ensure that we protected my children's needs as well as my financial situation. At each decision point they laid out a clear path, how it impacted the children, the financial situation. They even reminded me that my ultimate stated goal was the best interest of my children each time the other party got particularly challenging and my frustration was getting the better of me. The owner handled my case personally and was exceptionally well versed in the unique aspects of a divorce involving the military and associated benefits. Won't need them again (fingers crossed!!! :) ) but would totally recommend them to anyone!

sandi rigney

17:19 28 Jun 18

We had a fairly complicated case in Family Court and Juvenile Court. Kip was an excellent attorney. He covered every base there was to cover and left no stone unturned. I would highly recommend him to anyone going through custody proceedings. Hildebrand Law is an excellent law firm and I am confident that Kip or any of their other attorneys would do an excellent job! Thanks Kip and Hildebrand Law!

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17:15 13 Jun 18

The firm of Hildebrand Law is top notch. It's necessary to state again that Kent Millward is the epitome of excellence in a vast community of attorneys and will fight valiantly for you. We hired Kent and discovered a very good attorney with a good heart. For great family law representation and more this is the Law Firm for you. To Chris, Kent, Alison and all of Hildebrand Law, Thank you so much!

Bassam Ziadeh

21:20 02 Apr 18

I retained Hildebrand Law after interview a number of firms in the valley. Working with Michael C. was incredibly easy and informative. My case progressed in such a organized and thought out way to ensure that my needs were met. Michael was incredibly proactive and was able to see far ahead into my case to steer clear of some roadblocks. I would not hesitate to recommend Michael Clancy, and Hildebrand Law in general, to anyone.

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21:53 27 Feb 18

I have worked with Hildebrand law for about 8 years. They are always ready to serve, provide guidance and give you a few options. When they provide you options they also take the time to walk you through the pros and cons of each and give you a recommendation of what is best, but will listen to you and support whatever course you choose after making and educated choice. I’d recommend them to my closest friends and feel Chris Hildebrand is now a friend to me.

A Google User

16:03 22 Nov 17

Dear Stacey and Kip, How can I ever thank you enough for helping me through the most difficult time in my life? I couldn't put into words my heartfelt gratefulness. You both were so compassionate and professional at every given moment throughout this process with me. I thank you from the bottom of my heart. You helped me to regain my freedom.

A Google User

21:41 07 Nov 17

I just want to again thank the Firm for working with me all that it has. I could not have done anything without everyone's assistance. You, Chris and Stacey have been and continue to provide me with compassion and hard work towards my case. Also a very special thanks to Kip for taking my case in the beginning. Also continued support from him and his dedication to providing me with his expertise in this matter.

A Google User

18:16 18 Sep 17

Chris is a smart and aggressive attorney for his clients. Chris always tries to reach a fair settlement of his cases. I’ve represented clients when Chris was the opposing counsel and while he is professional and amicable to work with, he does not back off on what he needs to do for his client

Lindsay Donoian

06:53 27 Sep 14

I cannot express enough how thankful I am that I found Hildrebrand Law. Chris Hildebrand is an excellent attorney who has my best interests in mind and always encourages me to do the right thing regardless of what the opposing party is doing. Chris knows family law very well and relies on that knowledge to format options and solutions for each situation that may arise. He knows what the Court expects and what will and will not be tolerated. He has attempted to settle this case quickly and as inexpensively as possible from the start. His paralegal, Laura, is remarkable. She is organized, quick to respond, and compassionate. Chris is well prepared with a binder full of detailed and organized information and that is likely due to her thorough skills and expertise. While getting a divorce that was unexpected is a painful and difficult process, Chris and Laura treat my family and I like friends rather than another just "client." I am hopeful that I do not need to recommend divorce lawyers to anyone in the future but if I do, Hildebrand Law will be a recommendation I would give hands down.

Sam Franchimone

22:09 12 Sep 13

Despite the unfortunate situation I found myself in, Chris Hildebrand @ Hildebrand Law helped me maneuver every step with professionalism, expertise, and even a sensitivity that was an added bonus. Chris and his staff helped me even when I didn't know I needed the help. In other words. . . they made sure we did not leave anything undone. And in the rare instance we needed the expertise of another professional, Chris knew exactly who to recommend. Chris also knew, because of his experience, what to anticipate down the road of litigation. That meant we were better prepared to meet the challenges head on, which lead to a more equitable and fair outcome. I appreciated that Chris did his best to meet my every need in a timely fashion, even if I had a simple question that required only a phone call or e-mail or if we needed to talk face-to-face. I highly recommend Chris Hildebrand @ Hildebrand Law, PC.

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Creditor Collecting a Separate Debt With Community Property in Arizona

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