House Engrossed

 

actions for debt; spouses

 

 

 

 

 

State of Arizona

House of Representatives

Fifty-fourth Legislature

Second Regular Session

2020

 

 

 

HOUSE BILL 2237

 

 

 

AN ACT

 

amending section 25‑215, Arizona Revised Statutes; relating to marital property and contracts.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 25-215, Arizona Revised Statutes, is amended to read:

START_STATUTE25-215.  Liability of community property and separate property for community and separate debts

A.  The separate property of a spouse shall not be liable for the separate debts or obligations of the other spouse, absent agreement of the property owner to the contrary.

B.  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 spouse's contribution to the community property which that would have been such the spouse's separate property if single.

C.  The community property is liable for a spouse's debts incurred outside of this state during the marriage which that would have been community debts if incurred in this state.

D.  Except as prohibited in section 25‑214, either spouse may contract debts and otherwise act for the benefit of the community.  In an action on such a debt or obligation the spouses shall may be sued jointly and a judgment entered on the debt or obligation filed from and after December 31, 2020 shall be satisfied:

1.  If the spouses are sued jointly, first, from the community property, and second, from the separate property of the spouse contracting the debt or obligation.

2.  If only the spouse who contracted the debt or obligation is sued, from the community property that would have been the spouse's separate property if single, but not more than one-half of the total community property and that spouse's separate property.  The other spouse who did not contract the debt or obligation may not be sued in a separate lawsuit on the same debt or obligation.END_STATUTE

Sec. 2.  Effective date

Section 25‑215, Arizona Revised Statutes, as amended by this act, is effective from and after December 31, 2020.