What is Sole and Separate Property?
When it comes to marriage, Arizona is a community property state. This means that property that is acquired by either spouse during the marriage is jointly held by each. Property can include assets such as land, housing, vehicles, jewelry, cash, debt, and retirement and investment accounts.
However, property that is acquired by one spouse prior to marriage, after a divorce petition is filed, or acquired by inheritance is considered a spouse’s sole and separate property. Sole and separate property belongs completely to one spouse and is not considered community property.
According to A.R.S. 25-213:
A spouse’s real and personal property that is owned by that spouse before marriage and that is acquired by that spouse during the marriage by gift, devise or descent, and the increase, rents, issues and profits of that property, is the separate property of that spouse.
Property that is acquired by a spouse after service of a petition for dissolution of marriage, legal separation or annulment is also the separate property of that spouse if the petition results in a decree of dissolution of marriage, legal separation or annulment.
Notwithstanding the above point, a mortgage or deed of trust executed by a spouse who acquires the real property encumbered by that mortgage or deed of trust after service of a petition for dissolution of marriage, legal separation or annulment shall be enforceable against the real property if the petition does not result in a decree of dissolution of marriage, legal separation or annulment.
The above point also applies unless either spouse separately acquires, manages, controls, or disposes of community property or binds the community, except that joinder of both spouses is required in any of the following cases:
- Any transaction for the acquisition, disposition, or encumbrance of an interest in real property other than an unpatented mining claim or a lease of less than one year.
- Any transaction of guaranty, indemnity, or suretyship.
- To bind the community, irrespective of any person’s intent with respect to that binder, after service of a petition for dissolution of marriage, legal separation, or annulment if the petition results in a decree of dissolution of marriage, legal separation or annulment.
A contribution to an irrevocable trust that has or will have as its principal asset life insurance on the person making the contribution is a contribution of the insured’s separate property if the spouse of the insured is the primary beneficiary of the trust.
Dividing community property in a divorce proceeding, as well as understanding which assets are considered sole and separate property, can be a highly taxing part of a family law case. Call Rideout Law Group today to protect your interests with the help of an experienced and aggressive divorce attorney.
Rideout Law Group handles cases throughout the entire state of Arizona, with offices located in Scottsdale and Lake Havasu City. Our attorneys are experienced in handling divorce cases. For a free consultation, call 480-584-3328.