Sole & Separate Home & Business Divorce Case | Arizona Family Law
Separate Business in Divorce Case
Hi. My name is Larry Hirsch, and I practice exclusively in the domestic relations group at Jaburg & Wilk. Arizona has a case called [?], and that case has allowed the spouse that doesn’t own the business to actually have an interest in the appreciation and value of that business during the course of the marriage. What we’re looking at is labor, toil, and efforts of the community. Best way to think about this is, if I have a sole and separate business and I’m actually doing something to help that business, my spouse may have a claim to my sole and separate property.
Separate Home in Divorce Case
This same situation can occur with separate property homes. So let’s say that you get married, and you have a house that’s worth $500,000. Your community earnings bought the new pool, the new landscaping, and put in the addition, and when you file for divorce that house is worth $1.5 million, so you’ve got $1,000,000 of appreciation during the marriage. Is it fair that the spouse who owned the house coming into the marriage receives all $1,000,000 of appreciation? The courts in Arizona don’t typically think so. So those are two situations where your sole and separate property is not necessarily 100% your sole and separate property. Always be wary that there may be what we call a community lien on your separate property.