Divorce and the Disclaimer Deed Arizona
Do you know what a disclaimer deed is and what the impact of signing one can be?
If you’re not familiar with the concept and you’re married, you should learn a bit more about the disclaimer deed as soon as possible. It can have a serious impact on community property division in the event of a divorce.
What’s a Disclaimer Deed?
A disclaimer deed is a document that one of the spouses can sign during the purchase of property.
The person that signs the disclaimer deed will no longer own any interest in the property acquired. Arizona is a community property state. Whenever a disclaimer deed isn’t introduced, the two spouses own the property in equal amounts.
You can view a disclaimer deed this way – it’s used to make a specific asset acquired during the marriage separate rather than community property.
There are several situations in which one spouse could be asked by the other to sign a disclaimer deed.
Whenever someone acquires a large inheritance and decides to buy a house, for example, they may ask their spouse to sign a disclaimer deed. Disclaimer deeds are also commonly utilized to reduce the cost of buying a house.
If one of the spouses has a relatively low credit score, the conditions of getting a loan aren’t going to be the most favorable ones. In such instances, one person signs a disclaimer deed and the other one applies for a loan alone. Chances are that the spouse with the better credit history will get a more favorable interest rate from the bank.
Click here for an article on the Arizona disclaimer deed.
How Does a Disclaimer Deed Affect Divorce Proceedings?
Practical and financial considerations during the marriage could leave one of the spouses missing out on assets and property in the aftermath of a divorce.
Disclaimer deeds have dire consequences in the event of a divorce. The marital home is one of the biggest assets that the couple owns. Willingly giving up interest in the home could leave one of the spouses with very little after the asset division is completed.
The disclaimer deed itself says that the individual who signs it is waiving interest in the property being purchased. This is a legal document that can easily be enforced in the event of a divorce. Thus, you should think twice before signing a disclaimer deed. If you don’t know what a disclaimer deed is or what it entails, talk to a lawyer before signing anything.
People who sign disclaimer deeds to get a better loan may think that the reason for signing the document could contribute to the disclaimer deed being discounted in the divorce proceedings.
This isn’t the case.
An Arizona court isn’t interested in one’s reasons for signing a disclaimer deed. As long as the process is carried out in a lawful manner, the disclaimer deed is enforceable in divorce asset allocations.
What to Do if You’ve Signed a Disclaimer Deed?
If you’ve signed a disclaimer deed already, you’ll be left with very little to do.
It may be possible to recover some of the community property in the event of a separation but you’ll need a highly experienced and skilled Arizona divorce attorney.
Your lawyer could claim that you’ve been misled into signing the document or that your signature was procured through fraud. In this instance, however, you will have to provide the court with evidence supporting the claim.
A community lien could also arise and enable you to recover something. Whenever community funds are used to improve your former spouse’s separate property, a community lien will arise.
Such legal proceedings can get quite complex. Don’t attempt handling them on your own because you risk losing a lot.
Find out about divorce and foreclosure during and after a divorce in Arizona.