A pension is a plan that pays its members after they retire. Indeed. It noted that, under Arizona law, it is the superior court’s job in a divorce to divide all community property held by a couple. Divorce in Arizona endeavors to keep property division simple with a 50/50 split. . Transfer to Satisfy Obligation for Equalization Payment. The other role requires the CPA to apply his or her tax expertise to separating marital assets and payments. An equalization payment is a payment made by one party to the other in a divorce settlement where the party making the equalization payment receives a. Whether the person owing the money has any retirement accounts. T. First, add up the value of all the property you owned on the day you got married. Equalization payments are intended to ensure that each spouse gets half of their marriage’s community property during divorce. Arizona Revised Statute Section 25-318 (B) allows a judge to consider the taxes that will become due upon the sale of an asset, such as capital gains taxes on a home. You should consider talking with a lawyer before making decisions about these issues. Carroll. To execute the separation of the 401 (k) plan, a QDRO must be drafted that will tell the 401 (k) plan administrator how to divide the retirement asset. 00 if the money used to pay the separate debt was still in the parties’ bank account, as opposed to being used to pay a spouse’s separate debt in a divorce. This means that a property settlement debt will not have priority status in a. The Court reviewed case decisions about whether one spouse’s personal injury award is the separate property or community property in Arizona. The total value of your marital assets is $1,000,000, but if you get the house and your spouse gets everything else, it’s not. Finding a Realtor During a Divorce in Arizona From Hildebrand Law, PC by Our Experienced Arizona Realtor Chris Carter-Kent. The wife requested a trial to present. 1. Many times during a dissolution of marriage, the need arises to evaluate a business so the court can determine the community interest in making an equitable distribution of the community assets and debs. Step 1: Filing the PetitionStep 2: Serving the PapersStep 3: Disclosure and DiscoveryStep 4: Negotiation and SettlementStep 5: Divorce Decree…. Chapter 13 does not have the same limitations as Chapter 7 as Section 523 (a) (15) does not apply to a Chapter 13 bankruptcy filing. (Despite the name, this kind. In order to be eligible to divorce in Arizona, you or your spouse must have lived in the state for a minimum of 90 days prior to filing court forms to dissolve your marriage. The most important thing to accomplish prior to or at the beginning of a divorce is to have both. 4 (2). Is Arizona a 50/50 divorce state? No, Arizona is not a 50-50 divorce state. Therefore, you may use a maximum of $250,000 as part of an equalization payment. Proving Separate Property in an AZ Divorce | Hildebrand Law, PC. This works out because each spouse would have received $50,000. The Long Answer. Liquid assets (such as monies in bank accounts), can be easily divided; but other property (like automobiles, furniture, etc. S. 1. Phone: 602-922-9989. "I don't think that people in. Olivier wants to keep the condo and buy out Jessica’s share of the property. Disposition. Equalization payments are calculated on a per capita basis, then adjusted for provincial population. 2. If you are going through a divorce, you may have heard about a community lien on sole and separate property in Arizona. The Arizona Court of Appeals found that Rule 33 (A) of the Arizona Rules of Family Law Procedure allows a divorce judge to permit a party to a divorce case to make a statutory legal claim against a third party related to the divorce case. ” 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 3) The recent housing market is an advantage to sellers–you may be able to get a higher price for your home now than you would after the divorce is final. Equalization payments. Foster, the husband filed an appeal of the trial court’s division of guns in an Arizona divorce. At trial, the court issued orders dividing the husband’s military retirement between the two spouses. This may regard the following types of orders: Failure to Pay Child Support and Child Support Expenses. You may allow your ex to retain ownership of a mortgage-free home that. The basic calculation steps for a separate interest QDRO are as follows: For the AP: Determine the amount of participant’s accrued benefit assigned to the AP based on the terms of the QDRO. 9. We all want to protect. Mrs. This is sometimes called a motion for enforcement or contempt. You can fill out:. Whether a contempt motion may be filed. Make an agreement or apply to court. Call us today at (480)305-8300 or reach out to us through. The Scottsdale, Arizona Family Law Attorneys at Hildebrand Law, PC Discuss 3 Ways to Protect Your Personal Injury Award or Settlement During Divorce. Spector, 94 Ariz. Property is anything you can buy or sell or has value. When they do, couples may think that the. In the case of Howell v. Calculate the present value (PV) of the AP Offset. It sent the case back down to the divorce court to apportion the $79,000 between separate and community property. Kunz, 79 P. The two have agreed to share joint and legal physical custody of. In the case of Lightning Delivery Co. Call us today at (480)305-8300 or reach out to us through. He also ordered Mr. An equalizing payment can be ordered in a Florida divorce when one spouse is awarded a higher amount of equity in marital assets than the other spouse. However, once a divorce is finalized, a temporary alimony award ends. No. 92, 39 P. Normally, the law allows you to avoid tax on the first $250,000 of gain on the sale of your primary home if you have owned the home and lived there at least two years out of the last five. Let’s say Adam keeps the retirement accounts worth $400,000 and Eve keeps the house with an equity of $600,000. These issues can be very complicated, and if you make a mistake, you may not be able to fix it later. . Example Two: Same as Example One, but you brought $10,000 in savings into the marriage. Jean had a car worth $24,000, a car loan of $6,000, plus other personal assets. 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 community property case around today. com. She's getting a divorce, she's in default on her student loans — and the two issues are more related than it may seem. For example, let’s say you’re entitled to receive $500 per month based on your work history. Becchelli, 109 Ariz. Often, one of the parties is obligated to pay the other party an “equalizing payment. This means that one spouse must usually give the other spouse an equalization payment. Step 1: List all of the marital property items and debts and include their values. Exceptions may occur in situations. They must be someone with whom you get along well, and they must have mastered the various divorce laws and procedures. Decide whether to divide your pension 5. In the decree of dissolution, the trial court divided the parties’ community property. To simplify things, the end result of Ontario’s family property division is an equalization payment by the spouse with the greater net family property value acquired during the marriage to the spouse with the lower net family property value. 2d 712 (1953), the Arizona Supreme Court considered the question of whether Arizona courts would enforce an agreement made by an unmarried, cohabiting couple to pool their earnings and share equally in all assets gained during their time together. Divorce settlement agreements can be fairly basic. ) $55,000. 4) Selling your house after divorce may be more difficult due to a lack of cooperation from a spouse due to hurt feelings stemming from the divorce litigation. If so, is that in exchange for cash, equalization payments over time, a greater portion of the other’s retirement fund, maintenance, the marital home?. For example, if one spouse came into the marriage with $100,000 and didn't increase or decrease their savings, and the other came into the marriage with no money or debts, but had a net family property after of $500,000 at the dissolution of the marriage, the second spouse could owe the first $250,000 as an equalization payment. Divorce and alimony calculator. Schickner addressed whether the profits of a business earned between the date the Petition for Dissolution of Marriage i s served on the other spouse and the date. Q&A Asked in Sacramento, CA | Jun 15, 2010 Save My ex was ordered to pay. A “property equalization payment” is intended to equalize the final division of property between parties to a divorce. This is different than alimony, also called spousal maintenance, which is taxable (and deductible) unless the settlement. Arizona Divorce Laws. Property and debts can be distributed in a divorce or legal separation. She's getting a divorce, she's in default on her student loans — and the two issues are more related than it may seem. The Arizona appellate court in the matter of Rowe v. Website. We get a lot of questions about the division of marital assets. They can cover child support, visitation, and payment of marital debt or, they can cover everything from the right of first refusal to the custody of the family pet. Idaho has community property laws providing that all of the assets and debts a couple acquires during marriage belong equally to both spouses. Can a lender/creditor require payment of a debt even if a court order says the opposing party has to pay in the divorce? Yes. OPPORTUNITIES FOR CPAs. The community has $1,000,000 in community assets (house equity of $600,000, retirement accounts value of $400,000). Usually, judges will assign each spouse a percentage of the total value of all the couple's marital property (sometimes called the marital or community estate), minus their debts. . . Level 15. An equitable division of marital property is not always an equal division. Under California law, the superior court judges are required to equally divide parties' marital community property in a divorce. Anderson, 256 P. As Arizona is one of nine community property states in the United States, anything earned (or debt incurred) during the marriage is community property and, thus, subject to “equitable” distribution in a divorce. Usually, judges will assign each spouse a percentage of the total value of all the couple's marital property (sometimes called the marital or community estate), minus their debts. In other cases, however, the judge may decide to award one spouse a greater percentage of the marital. Problems can get particularly knotty when you're dividing assets. I am frequently asked at what age children can decide where they’d like to live, and whether or not they want to spend time with a parent. In Arizona, the decision of the court regarding the division of marital assets is based upon state law. Gain more tax law insights from LegalMatch's online law library today. The most important tip in locating hidden assets and income is to “close the loop” on both business and personal finances. C. Van Loan 569 P. This means that a property settlement debt will not have priority status in a. Once you can see the complete financial picture, you can also avoid the related mistake of arguing over one asset at a time. However, a failure to fully consider the tax mechanics of an installment plan often results in additional, unexpected tax liability. C. 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;An equalization payment is a financial transfer made by a government to ensure a level playing field among different regions or provinces within a country. The first is the “present cash value method”. Calculate the equalization payment 5. An increase in the value of that separate property during the marriage is also separate property. The attorneys at Hildebrand Law, PC would like to thank Erwin Kratz of Arizona’s QDRO Practice for submitting this informative article on the subject of Arizona divorce and the division of retirement accounts. Alimony, for example, is a separate concept and will be calculated and ordered independent of the division of property. In theory, an equalization payment equals the division of assets and debts that both parties take in a divorce regarding their division of community property assets and debts. Martin $46,688. If you need information about a judgment for premarital loans in an Arizona divorce, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Call Now (480)305-8300Call Today ! 480-507-6677. In divorce agreements created on or after January 1, 2019, or those modified after that date, maintenance payments are not deductible by the payor or included in the payee’s income. In a Ch. Teach About Equalizing Payments in an Arizona Divorce From the Experienced Arizona Divorce Attorneys by Hildebrand Law, PC. Barron addressed whether there was a defense to such a claim in a divorce. Life insurance orders. Equalization is a process used to ensure that taxes on taxable property be distributed among various tax districts at a fixed percentage of the property’s assessed value. Include all assets, except for those assets specifically excluded by the FLA, s. 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;You are entitled to receive either 100% of the benefits based on your own work record or 50% of the amount of your ex-spouse’s benefits, whichever is greater. The court also ordered the parcel of land to be sold with each party receiving 50% of the sale of the land. The judge may then impose fines, jail time or other penalties to encourage compliance in a contempt of court in divorce case. This reduces the equalization payment to $314,205. § 25-318(A) The Supreme Court first reviewed the Arizona statute that controls the disposition of property in a dissolution of marriage case, A. The division of marital assets is handled during this. List and value all your assets and debts 2. 218, 475 P. However, as noted, this is not always practical or even possible. Chapter 13 does not have the same limitations as Chapter 7 as Section 523 (a) (15) does not apply to a Chapter 13 bankruptcy filing. And the Parliament has to take action. (310) 919-4232. For military members. Failure to Comply with Equalization Payment Orders. The rest of your marital assets total $300,000. Meister addressed the analysis a judge should apply when choosing the valuation date of a business in an Arizona divorce. Generally, a property that is acquired. Under this contract, the. For example, some judges may order one spouse to pay the other spouse an equalization payment if the physical division of assets is not fair or equitable. Division of Property. 3d 1082 (1999), the appellate court considered a promissory note signed. An equitable division of marital property is not always an equal division. Czarnecki retired from the military that same year and received retirement benefits. So, in a community property state that considers a personal injury settlement to be communal property, the whole settlement is equally divided. However, a failure to fully consider the tax mechanics of an installment plan often results in additional, unexpected tax liability. Either of you can claim all of your payments, or you can divide. Limits to equalizing payments in a Florida divorce. A judge in Arizona is required to fairly and equitably divide the parties’ property and debts in an Arizona divorce or legal separation. Bankruptcy and divorce: Equalization payment introduction. Under A. Equalization issues may occur on certain circumstances such as divorce and separation, joint ownership, and multiple tax districts. According to the news outlet, Kris will have to pay Bruce $2. pricing is a means to determine the best value and avoid the peril of trying to sell an overpriced home. At this time, Mr. Calculate the equalization payment 5. Can one spouse decide to reconvert the joint property to community. Call (201) 845-7400 - NJ divorce attorney at the Law Offices of Peter Van Aulen has provided aggressive and passionate representation to clients. A surviving spouse’s share of community property is subject to administration for payment of community claims. Their home is. A property settlement agreement lays out each party's assets and liabilities post-divorce. The Court of Appeals found it to be irrelevant whether the Husband did or did not have a claim for an equitable lien against the home. If you can find your ex. If you have any questions about the information provided above, please contact Attorney. The Arizona Supreme Court noted two methods of determining that interest. comAt its core, the equalization process simply means that while an equitable distribution of assets will occur, it may NOT actually result in a 50/50 split of those assets. The personal representative’s reliance on In re Estate of Griswold, 13 Ariz. Binder, there was only one argument presented upon appeal, but the Arizona Court of Appeals had several factors to determine whether regarding the treatment of a military retirement pay allotment in an Arizona divorce decree. Call For Your Consultation. Thank you. J. We want to talk to you about equalization cash in an Arizona divorce. Divorce and alimony calculator. The spouse with the higher net family property value pays the equalization. You cannot use more than half of the Family Law Value to satisfy your equalization payment. Rather, the court will divide property between spouses in a way that it considers fair. In Armer v. More. She's getting a divorce, she's in default on her student loans — and the two issues are more related than it may seem. Evans and Mrs. The custody of their children becomes a disputed issue. Additionally, each person was able to keep his and her vehicle, while dividing airline miles, bank accounts and other assets. Baldwin’s son claims, gives married people only two ways to hold property: (1) They can own it together as community property. Apr 6, 2011 | Community Property Law, Divorce, Legislation. 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 arizonaYour partner has to pay you an equalization payment of $30,000 so you each end up with $70,000. You are free to use this image o your website, templates. The Arizona Court of Appeals in the case of Bell-Kilbourn vs. 3d 599 (Ariz. The difference between these reports is the level of discovery and data that is included, as well as the methods and approaches used to reach the Conclusion of Value or the Calculated Value. Cash equalizers are common, for example, when there is equity in a homestead that needs to be fairly divided between the spouses when one spouse will stay on deed to the home. Teach About Equalizing Payments in an Arizona Divorce From the Experienced Arizona Divorce Attorneys by Hildebrand Law, PC. In Linda Gibbs, TC Memo 1997–196 and in Seymour v. If one spouse has a pension when the relationship comes to an end, it’s value will be shared, or equalized. Licensed for 16 years. In divorce, you want to keep the house, which is worth $700,000. Attorneys benefit greatly from this post-divorce angst and may even perpetuate conflict through court motions and motions for contempt. Separation and Divorce Pre-2012 Rules. Equalization payments are normally used when the division of assets is not as easy to equally divide. I've read in a couple of places on the web that _____ Property Division Orders: A spouse who refuses to relinquish a specific item of property or to pay over a portion of a specific fund of money pursuant to a community property division order is subject to enforcement by contempt. Find local lawyers at LawLink. If inflation continues to average 5 1/2% over the next 30 years, a 30-year old plan member will see the pension increase by a factor of 5. In general, the payments may not last longer than: 50% of the length of a short-term marriage (lasting less than 10 years) 60% of the length of a moderate-term marriage (lasting between 10 and 20 years), or. (2) They can own it separately as separate property. Do not include your family home, even if you owned it on the date of your marriage. This can only be rebutted by clear and convincing evidence to the contrary. It found that under Utah law, the Husband’s debt would subject the couple’s community property to payment, not Wife’s separate property. Just so, during a marriage, loss of a spouse’s earning capacity means lost income to the community. If you need $100 weekly for groceries today, you may need $500 weekly for groceries 30 years from now. against Martin and Martin thereafter filed for divorce. Soon after the marriage, he bought the other half for $45,000. Schedule a free consultation with our Miami high net worth divorce lawyer, owner and principal at The Law Offices of Sean M. The Family Law Act says that the person who has the higher total has to pay the person with the lower total half of the difference between them. J. This effectively means that any debt that is a divorce-related debt will be non-dischargeable if you file a Chapter 7 Bankruptcy. However, the. The question on appeal was whether the language of the document extended. Half of $10,000 is $5,000, so the husband would have to pay the wife $5,000. Ct. AZ Divorce Laws & Community Property – Frequently Asked Questions (FAQ) AZ Photo from Getty Images The equalization payment is equal to one-half of the difference in net worth between the husband and wife. Value of Real Estate ( matrimonial home value at $1,800,000) $900,000. In every Arizona divorce, all marital property must be divided between spouses. We get just as many questions about the division of debt in an Arizona divorce. However, as noted, this is not always practical or even possible. If you are reading this article, you probably know that CSRC refers to Combat-Related Special Compensation pay. The jump comes from. Equalization Payments for. The trial courts have great discretion to order equalization payments paid under such terms that are just and reasonable. However, there are some assets where the determination of value can be quite complex, such as. . Note that the entire value of the property at the time of a separation or a divorce may not be exempt, however. The Family Law Act says that the person who has the higher total has to pay the person with the lower total half of the difference between them. There’s a new bill floating around the legislature – SB 1373 – which will significantly change Community Property Law in Arizona by eliminating all military assets and benefits from community property division in divorce cases. In a divorce, the separate property belongs to the spouse holding title, while community property belongs to both spouses. The process can be long, complicated, and emotional when a couple decides to end their marriage. To be fair and equitable to both spouses, a judge has the authority to order one spouse to make equalization. 175, 382 P. In a divorce, the separate property belongs to the spouse holding title, while community property belongs to both spouses. Learn more on our blog. To Arizona Court of Appeals to a memorandum decision in the case of Ley vs. ) Typically, temporary maintenance continues until the divorce is final. Failure to Comply with Property Division Orders. Equalization Payments. Camelback Rd, Suite 600 Phoenix, AZ 85016. Learn More About the Valuation of a Professional Practice in an Arizona Divorce From the Experienced Divorce Attorneys at Hildebrand Law, PC. Call Now (480)305-8300 Equalisation Wages in on Arizona Divorce | Hildebrand Law, PC The Arizona Court of Appeals ruled Arizona Revised Statute section 12-1119 allows a person to file and record a lis pendens in any lawsuit that could affect title to a home or other real estate. The rest of your marital assets total $300,000. 00. The parties owned a house, as well as a parcel of land. Keep in mind that this calculator is intended to be used only as a general tool to estimate potential splits and payments. In Arizona, Arizona Revised Statute section 25-327(B) states: “Unless otherwise agreed in writing or expressly provided in the decree, the obligation to pay future maintenance is terminated upon the death of either party or the remarriage of the party receiving maintenance. Is a Spouse’s Separate Property Liable for Community Debts. In the majority of cases, a fair division will be an equal (50/50) division. Apr 14, 2013 | Divorce, Family Law, Strange Divorce Laws. Most of the tools available to you in collecting the equalization payment will require you or your attorney to obtain further court orders. For example, a house, car, or furniture. This is going to mitigate some of those hard feelings your spouse may have about your decision to remove money from financial accounts. The calculation of that equalization payment will be an. If your ex can pay . Courts determine which assets are part of the marital property and separate property, and distribute them either equally (in a community property state) or equitably (in an equitable distribution state) between the divorcing spouses. We want to talk to you about equalization payments in an Arizona divorce. The community property is liable for the premarital separate debts or other liabilities of a spouse, incurred after September 1, 1973, but only to the extent of the value of that. 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. There are A LOT of family law attorneys in Phoenix. By the time of trial, Mr. But otherwise, it is not a part of the deceased spouse’s estate. Under normal circumstances, a judge may require Spouse A, who got to keep a high-value asset (like the family home), to make equalization payments to Spouse B when the value of the home pushed that Spouse. Winters, 298 P. We will refer to this as the “AP Offset. If a party fails to live up to the terms of the divorce decree such as: Failing to pay child support; Failing to pay spousal maintenance; Failing to pay the equalization payment; Failing to sell the house in a timely manner and divide the proceeds; Or fails to pay a particular bill Enforcement of Court Orders. If at the end of your divorce (in your Judgment ), the judge ordered your spouse to pay you money or split the money from the sale of something, you will need to collect the money yourself. Thus, the receiving party “pockets” the entire amount. Temporary alimony is usually a short-term solution, where one spouse pays financial support to help the low-earning spouse cover living expenses during the divorce. Instead, the trial judge awarded the appellant wife $10,627. Calculate each partner’s net family property 4. 00. When your marriage ends, the full value of the family home must be. However, the Court of Appeals said, under the Arizona Supreme Court decision in Toth v. If you don’t use this special tax rule, you might have to cash in your RRSPs to make an equalization payment to your spouse. In a divorce, the court divides the money and assets between the spouses equitably. The general process for equalizing net family property is the following: First, determine the value of each spouse’s property at the valuation date. It’s strongly recommended to submit the draft QDRO to the 401 (k) plan administer for their review and approval. Consider Capital Gains Taxes on the Sale of a House in an Arizona Divorce. In my 2009 default divorce I was ordered to pay my ex a $1,500 equalization payment. Collect your family law judgment. 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;Segregating Separate Property From Community Property Explained By the Experienced Scottsdale Arizona Divorce Attorneys at Hildebrand Law, PC. The court issued a decree of divorce in January 2019. Divorce decrees may be, from time to time, violated. The pandemic has taken a toll on couples both financially and psychologically, which has actually triggered many to consider going for separation and maybe even filing for bankruptcy. then he would have to pay his Wife the equalization of $10,500 plus pay her for her one half of the interest in the home. (A separation agreement is a form of domestic contract. Indeed. Creditor relied on Arizona Revised Statutes §25-215. The court also decided the equity from the condo will be used to pay off the loan the husband had obtained. This means that one spouse must usually give the other spouse an equalization payment. Filing bankruptcy after divorce can impact multiple parts of a settlement decree, including both property debts and the amount of spousal payments. Dividing assets due to a divorce is complex. In. Kratz at (520)577-5155 if you have questions about how to properly divide retirement accounts in an Arizona. ) (spousal support reduced well below range on account of equalization payments out of business income). STEP ONE: CALCULATING EQUALIZATION PAYMENTS. 2010),. However, as noted, this is not always practical or even possible. However, any money earned or assets acquired before marriage by a spouse is the separate property of that spouse. An equitable division of marital property is not always an equal division. R. The Arizona Supreme Court agreed with the trial court’s decision that the interest in the ranch was husband’s separate property. (NFP) owes the other partner half of the difference between the NFPs. Beneficiary Designations After Divorce in Arizona From Hildebrand Law, PC. Sometimes a pension also pays after a member is fired or laid off, becomes. whose proceeds were used to buy a property or pay down a mortgage. Earnings of either spouse during a marriage are community property in Arizona. Learn what assets have special rules 3. 225 The husband owes the wife prejudgment interest of $7,773. The disclaimer deed in that divorce was signed on a home purchased during an Arizona marriage. They will both be included as the family court attempts a fair and equitable division of all marital property. Evans married in 1949. Do you know that? — In Kentucky, It is illegal to marry the same person four times. Whether canine, feline, equine, or exotic, if the. The goal is to avoid inaction, ambiguity, noncompliance, and—most importantly—inadvertent forfeiture of entitlements. S. 13 it is dischargeable provided the plan treats it according to whether it is a priority debt or not. Our Arizona community. Pfeffer held that a creditor might come after community assets but usually cannot come after the separate property of a spouse to pay a community debt. ”. In other words, it is necessary to make sure you can identify all sources and uses of income and assets for the individuals in question. The Arizona Court of Appeals in the case of. It reviewed each to determine whether the spouse.