Property acquired before the marriage or property received via gift and inheritance during the marriage are not community property—meaning that property still belong 100% to the spouse who acquired it. But if that property gets 'commingled' with community property, it loses a sole-and-separate character and can become community. This, of course, means the property belongs equally to each spouse. There will be an exception if the sole-and-separate property can be 'traced.'
Some common examples of sole-and-separate property becoming community property:
- Aaron receives $100,000 in an inheritance. He puts the money into a joint bank account. That inheritance is now likely community property.
- Brynn saved up $200,000 prior to the marriage. She keeps her savings in the same bank account where her paychecks are deposited during marriage. That bank account is now likely community property.
- Charlie bought a house prior to his marriage. When he got married, he had his new wife sign a Disclaimer Deed (a document stating that she has no ownership in the property). Charlie continues to pay down the mortgage from money he earned during the marriage. In this instance, the house does not become community property, but Charlie’s wife will have a 'community lien' on the house, meaning she can ask Charlie to reimburse her for the money the community spent on the house during the marriage.
- Della is a school teacher who has paid into the Arizona State Retirement System for 20 years. She marries Edward, and their marriage last ten years. She and Edward divorce the same year Della retires. Edward has a claim to one-half of one-third (because they were married for 10 of the 30 years Della paid into ASRS) of Della’s retirement.
- Francine has a bank account prior to marriage. She adds no additional funds into during the marriage, but she transforms the account into a joint account with her husband. This is now a community account.
- Giselle