questions & answers

Question: I have to do a 50-50 split of net equity; $412000 (appraisal value)-$380214.57 (mortgage)=$31785.43/2=$15892.72 due to ex. I am doing a Refi, but as a veteran I can only borrow up to $417,000 at 90% LTV which then means there is no equity to disburse but I was told that is my problem and I still owe. Now can I deduct broker's commission from equity even though there is no sale? Or is there anything else I can deduct? Because I don't have over $15,000 to buy him out. I did invest over $22000 of my own money for home improvements, does this count for anything? What are my options at this point?

Answer: Arizona is a community property state. Here is the law in Arizona regarding what is considered community property:

25-211. Property acquired during marriage as community property; exceptions; effect of service of a petition
A. All property acquired by either husband or wife during the marriage is the community property of the husband and wife except for property that is:
1. Acquired by gift, devise or descent.
2. Acquired 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.
B. Notwithstanding subsection A, paragraph 2, service of a petition for dissolution of marriage, legal separation or annulment does not:
1. Alter the status of preexisting community property.
2. Change the status of community property used to acquire new property or the status of that new property as community property.
3. Alter the duties and rights of either spouse with respect to the management of community property except as prescribed pursuant to section 25-315, subsection A, paragraph 1, subdivision (a).

Generally, income from your job is considered community property. If the income was from separate property, then it remains separate property. See: https://www.irs.gov/publications/p555/ar02.html for more info.

There are a few different variables that could change the answer to your questions. It would be best for you to speak with an attorney so you can discuss the details of your situation and get the most correct response. Veterans who qualify financially can receive a free one hour consultation with an attorney through the Arizona Military Assistance Project. If you do not qualify financially for this program, you may still qualify for a reduced fee consultation through the Modest Means Project, which is open to everyone regardless of military service. There are different financial qualifications for this program. To see if you qualify for either program, call (866) 637-5341.