Maximilian Julian is a partner at Gertsburg Licata. A Community Property With Right of Survivorship Agreement is a method to avoid probate in Arizona; however, there are several drawbacks. They go as follows: Additionally, some states actually allow married couples to opt into community property rules. New Arizona Limited Liability Company Act (ALLCA) Section 29-3401. These can be very technical issues. As a legal document, the property settlement agreement will be used as a contract. New Mexico. Arizona Life & Disability Insurance Guaranty Fund. Choose the formatting from the authorized develop and obtain it on your system. An increase in the value of that separate property during the marriage is also separate property. Disposition of property; retroactivity; notice to creditors; assignment of debts; contempt of court. The parties were married on February 15. ”. Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin are community property states. It depends largely on the circumstances. Y. In these states, if you get a guaranty from only one spouse, then only their separate property is subject to the guaranty. The agreement declares the appointed guarantor, loan amount, and applicable loan terms. If the landlord requires that both spouses sign the Personal Guaranty, try telling the landlord that the spouse who is not active in. creation of a community lien on sole and separate property in arizona; community property laws about a spouse’s personal guarantee in arizona; choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizonaThe 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 would have been such spouse's separate property if single. During the divorce process, property is divided according to its status as "marital property" -- that which was acquired after the marriage and is thus shared -- or personal property that is not subject to division. The problem for a lender requesting a personal guaranty from a principal's spouse is that the federal Equal Credit Opportunity Act ("ECOA") has often been interpreted by courts as making it illegal for the lender to unilaterally require the guaranty without first meeting some strict criteria. C. Limitations of the Personal Guarantee. § 33-452 - Conveyance of community property § 33-453 - Conveyance of homestead § 33-454 - Power of attorney from one spouse to the other to execute instruments relating to property § 33-455 - Conveyance of absolute title by judicial sale; effect upon rights of persons not parties § 33-456 - Passage of title to real or personal property by. S. Most states also let you keep a couple of thousand dollars' worth of business equipment and tools of the trade, as well as money in tax-deferred retirement plans. These guarantees bypass any limited liability protections. They took title as community property with right of survivorship. What is Community Property Law in Arizona and Why Does it Matter? Arizona is a community property state and community property law controls the division of all. S. The Arizona Court of Appeals in the case of Bell-Kilbourn vs. Alter the status of preexisting community property. California married couples generally have three options to take title to their community (vs separate) property real estate: community property, joint tenancy or “Community Property with Right of Survivorship. Second, personal guarantees in Arizona must be signed by both spouses in order to collect against community assets. tenants in common. Even a stay-at-home. The parties were going through a divorce in Arizona. In an era in which divorce occurs in over half of the marriages and each spouse can engage in careers which can result in extensive debts, the issue of when does a spouse face liability to third parties for the debts of a husband or wife can become critical. There are. Upon the death of one spouse, every asset that is community property is divided in half. , Eminent domain is the power of government to a. A bank account or house with only one individual’s name on it still counts as community property if started or obtained after the union. Our Arizona community property and family law attorneys have over 100 years of combined experience successfully representing clients in community property and family law cases. The first issue is supported by the well-established rule in Arizona presuming a gift occurs if one spouse places separate real property in joint tenancy. In other words, just because, for example, a house is only under one spouse's name on the. In addition, your personal guarantee could affect your family. [2] Four other states have adopted optional community property systems. The same applies to other assets such as wages earned by either person or. In a common law state, marital property is owned by the spouse that bought it. E provides that two or more natural persons may own an LLC membership interest as joint tenants with right of survivorship and a married couple may own an LLC membership interest as community property with right of survivorship. In Arizona, the rule is clear: any property, including wages, which you acquire after a petition for divorce or legal separation has been served remains your own separate property, if that petition results in a decree of dissolution or separation). So, if you and your brother are in a car accident and he dies a few hours after you do, his estate would not receive any of your property. "Marital Property: A U. 5 Star Rated Best Family Law, Criminal Defense, Personal Injury, and DUI Lawyers. This means any property acquired by you or your ex-spouse during the course of your marriage is owned in equal part by. So what that means is if the couple purchased shares, for example, that were worth $100 and on the death of the first spouse, they're worth $1,000, the new basis in the property will be $1,000. You were misled by the creditor when signing the guarantee, an act of fraud has taken place. At least two California courts have ruled in landmark decisions that a quitclaim deed does not negate community property ownership. (See Fla. § 25-211. Unlimited personal guarantees. § 25-211 - Property acquired during marriage as community property; exceptions; effect of service of a petition § 25-213 - Separate property § 25-214 - Management and control § 25-215 - Liability of community property and separate property for community and separate debts § 25-217 - Ownership of property acquired after moving into stateFederal estate/trust income tax return – due by April 15 of the year following the individual’s death. If It's Serious Enough To Hire An Attorney, Hire A Former USAF JAG and Nuclear Submarine Officer. Kelly and Connor have been married for 5. How you're covered. 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. The Arizona Court of Appeals in the published case of Stock vs. If you were a married couple living Arizona, you had three options as how to hold the title to real property in Arizona. To originate a mortgage for manufactured housing eligible for sale to Fannie Mae, it must be titled as real property in a process that varies from state to state. Stat. If a creditor is trying to enforce a personal guarantee against you, an experienced asset protection attorney at Nielsen Law Group is available for a complimentary review of your asset situation. CHAPTER 3. Texas law defines community property as all of the property that either spouse acquires during the marriage, except separate property. c. Divorce can be a messy process, and it can become. 1981) (dismissing complaint and cause of action as to spouse). Arizona real estate is transferred using a legal document called a deed. Community property laws view marriage as a partnership in which both spouses equally share the income and assets they acquire after the wedding. ) you own as well. Read this complete Arizona Revised Statutes Title 33. In the probate context, the distribution of a person’s property on the occasion of their death depends on who acquired the property. Arizona Community Property Laws & Dividing Assets. Question: You have previously written in your column that a husband and a wife owning their home as Community Property with Right of Survivorship (” CPWROS” ) is superior for tax purposes, compared to Joint Tenants with Right of Survivorship (” JTWROS” ). limitations on government action. However, a couple can formally agree to hold real property as joint tenants. Community Property Law in Arizona. According to our research, the nine community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. and personal guaranty issues; (3) Tax controversy issues (i. There are two types of "promise to pay" personal guarantees: limited and unlimited. Half-relatives. There is a two-year statute of limitations for negligence under ARS 12-542, which will generally be the applicable law for construction defects. Art. Phoenix, AZ 85007-2624. The Equal Credit Opportunity Act and Reg. did not have a will, but you are related to the decedent as: 1. Create Document. The quit-claim deed is not typically used for residential real estate purchase transactions. “If the government were on top of it, they would change the document,” says. It covers both the timely delivery and condition of your items. Inheritance, Community Property, and Marriage Explained. Under community property law, spouses already equally own everything acquired during marriage. A personal guarantee is a guarantee given by an individual rather than a company. In Stevens v. Once the deed is signed, it is recorded in the land records of the county where the property is located. " To create the trust, spouses must follow certain rules. As of 2020, there are nine states where community property laws are observed. For example, if you are applying for a government loan insured by the Federal Housing Administration (FHA) or the Veteran's Affairs (VA) , your spouse's credit will need. S. Upon the death of one spouse, every asset that is community property is divided in half. § 25-318(A). Common law. The guarantee report is generally a commitment to insure title to the property in the name of the. View property details of the 50981 homes for sale in Arizona. of the individual or corporation) The lender/creditor's information (name and address) A statement of any limits to the guarantee should they exist, i. In other words, if one party purchased the asset during the marriage, then it is considered community property. Our Florence Law Firm is staffed with family law attorneys that offer Divorce Mediation, Uncontested Divorce, Contested Divorce, Legal Separation, Female Divorce Lawyers, Annulment, Child Support Issues, Child Custody, Military Divorce, Parenting. Medicaid is a health care program for low-income individuals of all ages. At death, each spouse has a right to transfer their one-half of the community property. Comparison pricing and features of other online tax. The United States has nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 2, Community Property Law, for more information. Limited Personal Guarantees. This includes reposting forms from this site to another site offering free legal or other document forms for download. Let’s cover each of these concepts individually. "Caret Down. We are in Az. Unless otherwise specified, community property in Arizona is held by both spouses equally. Arizona law provides that a Personal Guaranty signed only by one spouse is not effect against the assets of the non-signer spouse. COMMUNITY PROPERTY LAWS ABOUT A SPOUSE’S PERSONAL GUARANTEE IN ARIZONA. They took title as community property with right of survivorship. The court may impress a lien on the separate property of either party or the marital property awarded to either party in order to secure the payment of: 1. S. If the decedent was single, their estate consists of all of their assets. So before you sign that dotted line, make sure you completely understand what a. If the deceased acquired the property, 50% of the quasi-community property belongs to the deceased, who can bequeath or devise it as they want. Unlike some community property states, Arizona does not require the division of marital property in divorce to be exactly equal, but it must be fair and will usually be approximately equal. Arizona Revised Statutes, Title 25, Chapter 2, Article 2, Section 25-211 states that all property acquired during marriage is considered community property in Arizona, except those that were: Acquired after service of divorce petition, annulment petition, or legal separation petition (but only if the petition results in a decree). 100% of the first $200,000,000 made available. One half of the property is retained by the. as community property with right of survivorship, the following described property situated in the County of _______________, State of Arizona. SEPARATE PROPERTY. 2. One year after meeting at a senior citizens dance in Mesa, Arizona in 1992, Anthony Toth and Gloria Snyder Toth were married (Anthony, age 87 and Gloria, age 66). Property acquired during marriage as community property; exceptions; effect of service of a petition. A property settlement agreement lays out each party's assets and liabilities post-divorce. Community Property States. Your spouse-to-be has $10,000 in credit card debt in their name. SUBJECT TO: Current taxes, assessments,. The Foreclosure Title Report. All. Important Fact About Personal Guarantees & Arizona Community Property. In states with community property laws, all assets and debts obtained between spouses during marriage is equally owned. Located in the heart of Downtown Mesa. This means the guarantor is responsible for repaying the entire loan amount. SUBTITLE B. In a divorce, community property that is divided equitably. If the couple divorces, the community property must be divided and distributed to the parties. A. When one spouse in a marriage dies, they have a right to pass on their property to others upon their death. R. Best to you. Those states are Alaska, South Dakota and Tennessee. Fortunately, most states are not community property states so your spouse cannot be pursued for your debts. They go as follows: Additionally, some states actually allow married couples to opt into community property rules. § 33-431, there is a fourth option – community property with right of survivorship. Arizona Community Property Laws. This includes vehicles, homes, furniture, appliances and luxury. If you live in a community property state other than Arizona. In the case of Leisure Lane it was determined the community contributed $39,741. , v. determining community versus sole property in arizona; creation of a community lien on sole and separate property in arizona; community property laws about a spouse’s personal guarantee in arizona; choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona The theory behind community property is that as spouses contribute to the marriage with income and maintain a household, they equally share in the accumulated assets and debts. This additional level of assurance is commonly required. online today or by calling (561) 953-1050 to. It's important to put your property arrangements in writing. The community property is liable for a spouse's. So, if a. (See Becchelli v. Wisconsin. In the U. This is relevant for Arizona’s community property laws because of geography—modern-day Arizona lies on lands that used to belong to Mexico. Is AZ a community property state? The short answer is: Yes, it is, making it one of nine community property states in the country. Alter the status of preexisting community property. A personal guarantee is a legal clause designed to protect the lender in a situation where the business is unable to pay back its debt. , on the other hand, is that which was owned prior to the marriage. The consequence for credit cards in community property states is that any card debt that. D. Arizona is a community property state. When one or both partners have debt coming into the marriage, the debt belongs solely to the person who incurred them. Complete, change and printing or indication the Arizona Personal Guaranty - Guarantee of Lease to Corporation. A personal guarantee is when a business owner, or business owners, signs a legally binding promise to repay a business loan personally. Community property states are Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington, and Wisconsin. In several other states, spouses can decide to opt into a community property system or designate certain assets as community property. October 28, 2020 - 12:17 am. Income and debt are jointly owned in community property states unless the income or debt is. Arizona Community Property Laws. property that the spouses have agreed (in writing) is separate, usually through a legally valid prenuptial or postnuptial agreement, and. S. The short answer is a qualified yes. Assets acquired before a marriage are excluded. Under Arizona law, the landlord may have the right to evict you, lock you out of the property, and later put the business property. Trying to dodge personal guarantees lands a debtor in punitive damages hot water to the tune of $300,000. Universal Citation: AZ Rev Stat § 25-211 (2021) 25-211. For Immediate Help - Call Us (480) 438-8014. The Court reviewed case decisions about whether one spouse’s personal injury award is the separate property or community property in Arizona. R. Gifts and inheritances received during the marriage are also separate. The Arizona rule — pronounced in a 1926 case and consistently followed – was that any amounts of money recovered for injuries to one spouse during the marriage are community property. state-level legal distinction of a married individual's assets. Arizona law provides that a Personal Guaranty signed only by one spouse is not effect against the assets of the non-signer spouse. THAT each of us individually and jointly hereby assert and affirm that it is our intention to accept said instrument as such Community Property with right of survivorship and to acquire any interest in, or any. creation of a community lien on sole and separate property in arizona; community property laws about a spouse’s personal guarantee in arizona; choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona In Arizona, there is a presumption that all property acquired during a marriage is community property. Without a loan, many small businesses would never get off the ground. which i believe, after researching the law, Rackmaster vs. Wisconsin. 010 and 26. 01 Ownership of interest in limited liability company in joint tenancy or community property with right of survivorship. A lease guarantee is an official agreement signed by the landlord, tenant, and in addition, a third party who meets the monetary requirements of the landlord. However, as a landlord, your contents coverage. cmt. Nine states—Wisconsin, Washington, Texas, New Mexico, Nevada, Louisiana, Idaho, California and Arizona—have community property statutes that affect a married couple's federal income tax return. Community Property. Here, we will discuss the latter, to give you better insight into the division of property and debt process during your divorce. Community property will be owned equally by the spouses. In most divorces, community property is sold unless both parties can. A 2022 survey from Shopify found that the average small business owner spends $40,000 in their first full year of operation, or $18,000 if their business has. You can make a claim directly to Amazon, and our team will determine if you're eligible for a refund. 1501—736. Construction bonds are also known as contract bonds, because. Second, personal guarantees in Arizona must be signed by both spouses in order to collect against community assets. There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington,. The key here is during the marriage. That means a soon-to-be former spouse is probably entitled to a share of your retirement. So, in order to have a valid personal guarantee against your community property your husband's landlord would need to get the signatures of both you and your husband. Manuel signed a new will, leaving everything to the couple’s. Folks considering asset protection in any of the nine states (AZ, CA, ID, LA, NV, NM, TX, WA, WI) that have Community Property laws are often mystified and confused by what it all means. Property damage coverage: $15,000. 2016-232). N. To help you find your perfect rental property, we also provide tenant. 2022 Arizona Revised Statutes Title 25 - Marital and Domestic Relations § 25-318. Promissory Note – Do-It-Yourself for $47: A Promissory Note is the legal document signed by a borrower that evidences a promise to repay and the payment terms and conditions. gov. §38-431. Arizona Community Property Laws. Service Star Realty is pleased to welcome you. Even as Arizona changed hands and jurisdictional. § 14-3916 Community property; Article 10 Closing Estates. To qualify for Small Estate Probate the total value of real property must be under $100,000 and/or personal property (everything not real estate) must be under $75,000. Community Property: A U. com. A-to-z Guarantee. You are merely signing over your legal interest, if any, in the property. 2015 Arizona Revised Statutes Title 29 - Partnership § 29-732. If real estate is acquired during the marriage, this fact overrides the provisions of any deed that transfers title into one spouse's name alone. Assets acquired before a marriage are excluded. In Arizona, debt collectors can garnish up to 25% of the borrower’s disposable earnings. If you have questions about filing a homestead and separate property in an Arizona divorce case, you should seriously consider contacting the attorneys at Hildebrand Law, PC. a maximum amount that the guarantor is required to pay. Earnings of either spouse during a marriage are community property in Arizona. This represented her share of the community income earned during their three years of separation. However, the spouses’ community. Community property laws rule in divorce court, splitting assets 50/50. take private property for public use. Even as Arizona changed hands and jurisdictional. Because of this, there are certain rules that apply to personal guarantees in Arizona that are likely not applicable in other states. When one or both partners have debt coming into the marriage, the debt belongs solely to the person who incurred them. ARIZONA: Yes – However, if lender is looking to community property, such as wages or salary of the borrower spouse, for repayment of a mortgage loan, the non-borrower spouse must execute a marital community joinder to legally bind the marital community to the repayment of the mortgage loan. In Arizona divorce laws, Community property includes both assets and debts. guarantee to citizens a. § 25-214(C)(2). b. Grants and devises to two or more persons; estates in common; community property with right of survivorship; joint tenants with right of survivorship on Westlaw. A property settlement agreement becomes a legally binding part of the final judgment when your marriage is officially dissolved. 2005 Arizona Revised Statutes - Revised Statutes §25-215 Liability of community property and separate property for community and separate debts. However, there are contrary arguments that can be made, including fraud or mistake, or the fact that the community paid the mortgage and other expenses associated with the home. Download Type: Microsoft Word. Washington. The purpose of a lease guarantee is to. Some markets may be longer, and some may be shorter — in Flagstaff, for example, that number. Email: guarantyfunds@difi. Updated September 12, 2023. Acquired after service of a petition for dissolution of marriage, legal separation or annulment if the. However, a valid prenuptial or postnuptial agreement can detail which marital assets are not shared. Both parties hold equal, shared ownership of the property, regardless of who contributed what to the purchase. Stat. 3. The rules and definitions are set forth at Section 33-431 of the Arizona Revised Statutes. e. But these nine states are the only. 16, § 15 (2022). a. Professional Chandler Property Management means providing full service including marketing, screening, leasing, rent collection, maintenance, and being available 24 hours a day every day. There are nine community property states in the United States, including. Anderson, 256 P. unwritten guarantees of individual liberty. Neither of you would be responsible for the other person's debt in that scenario. The issues discussed in this chapter are base on Arizona law. Entering a personal guarantee means you provide the lender with more security by pledging your personal capital and assets. 4803058300. 020, acquired after marriage or after registration of a state registered domestic partnership by either domestic partner or either husband or wife or both, is community property. The disclaimer deed in that divorce was signed on a home purchased during an Arizona marriage. Whether canine, feline, equine, or exotic, if the animal is designated as community. CHAPTER 3. American Express Business Line of Credit: Best for line of credit. All property acquired during a marriage is. The grantees by signing the acceptance below evidence their intention to acquire said premises as community property with right of survivorship. In re Norton, 34 B. Find your state’s titling requirements on this. Motor vehicles including cars, boats, motorcycles, mobile homes,. § 33-431, there is a fourth option – community property with right of survivorship. What are examples of community property and debts?. Separate property will be the property of only one spouse. As an Arizona State Bar Certified Specialist in family law matters in Arizona, I wrote in one of my prior blog articles that the Court may be able to treat accrued vacation pay as a. CREATION OF A COMMUNITY LIEN ON SOLE AND SEPARATE PROPERTY IN ARIZONA. 02 (2022) 25-318. The four premises of value Arizona court’s may apply to a business appraisal in a divorce case are the “going concern premise,” “value of the assets premise,” “value of the sale of the assets premise,” “value of the assets in an expedited liquidation premise. You are entitled to the real property and/or personal property, and have the legal right (“legal standing”) to submit an affidavit claiming the property because: • You are named in a will. With an A+ with the BBB, learn why On Q Property Management is the top management company in Chandler, Arizona. The beneficiary can take title to the property without assistance from the executor. 3. creation of a community lien on sole and separate property in arizona; community property laws about a spouse’s personal guarantee in arizona; choosing a valuation date when dividing assets in a divorce in arizona; can a spouse be held liable for credit card debt in arizona; calculating a community lien on a depreciating asset in arizona my husband signed a personal guarantee promising payment of an account for a business which went bankrupt. Also, in most states (except community property states, discussed above), a creditor can't take property that belongs to you and your spouse if the debt is in your name only. With this kind of trust, both partners’ halves of the property’s cost basis will be. Community property is a form of joint property ownership law in nine states and two territories; it is optional in three states. The Arizona Court of Appeals affirmed the ruling of the lower court. az. A family member will just need to submit a petition that outlines the decedent’s liabilities, assets, and. The concept of community property is rooted in Spanish law and is now widespread. 02 (2020) 25-318. The Arizona Court of Appeals recently reaffirmed a limit on creditors seeking collection of a premarital debt from the marital community. 702, 705-06 (Bankr. If you as a business owner sign a personal guarantee, you could be putting you and your family’s financial future at risk. However, one spouse may gift the other his interest in community property, making it the separate property of the other. The court awarded assets totaling $184,843 to wife and $215,211 to the husband. "[W]hen property is held as tenancy by the entireties. A bank account or house with only one individual’s name on it still counts as community property if started or obtained after the union. Martin to pay Mrs. A quit claim deed transfers your property interest to another person or legal entity. 3. All property acquired during the marriage will be divided equally between both parties; it is known as community property in this state and applies to all types of possessions (both tangible and intangible), real estate, income, or debts that exist at the time of divorce. However, a special rule applies to personal guaranties. A spouse's separate property consists of: (1) the property owned or claimed by the spouse before marriage;. S. An “in rem proceeding” refers to a lawsuit or other legal action directed toward property, rather than toward a particular person. However, this rate may be. Guarantee funds can also be used for refinancing the debt of an essential community. No: Yes; Consensual liens have priority over homestead. A. By offering that security, you may be able to borrow more in the long run. At least. Arizona’s community property laws are typical of the traditional Spanish division of spousal property. and you should review each company’s offerings when deciding what is best for your own personal financial circumstances and needs. If you have any questions regarding personal guarantees or you need assistance drafting a guarantee document, please contact Windtberg & Zdancewicz,. A property system where the presumption is that each spouse contributes income and assets to the "community" of the spouses, and shares equally in any earnings, assets, and debts of the community. Bell-Kilbourn made a decision regarding the effect of a Disclaimer Deed in a divorce in Arizona. A. Creditors May Reach Community Property and Separate Property of Contracting Spouse e. 8. Either spouse separately may acquire, manage, control or dispose of community property or bind the community, except that joinder of both spouses is required in any of the following cases: 1. 50% of the next $200,000,000 made available. Examples of community property in Arizona could include the following, though it may depend on how and when they were acquired: Bank accounts, whether held jointly or in each party’s separate names; Personal property including. However, most states use common law, which allows spouses to own property individually. In addition, you may also lose access to the property itself. Arizona doesn't require homeowners insurance by law, but if you finance your home, your lender may require you to have a homeowners insurance policy. The court also holds that joint tenancy property should be treated similarly to community property under Arizona law (A. ‘Bad boy’ clauses Bad boy clauses, also known as “carve-outs” are a conditional type of personal guarantee that kicks in when the borrower does something illegal or. Yet, for the owners of private companies, providing personal guaranties may be a necessary part of the process. Robertson, No. A personal guaranty of another’s debt must be signed by both spouses for community property to be bound, otherwise only the. 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. my husband signed a personal guarantee promising payment of an account for a business which went bankrupt. See A. (602) 825-2500. R. Under this system, property acquired by a married person during the marriage is the property of that person separately, unless the person agrees with his or her spouse to hold the property jointly. Fundbox: Best for startups. PROPERTY RIGHTS AND LIABILITIES. 25% of all amounts exceeding $400,000,000 made available. It specifies the amount owed, if interest will be charged, the interest. This would be your best option- even if you have to use the equity in your home. If the landlord requires that both spouses sign the Personal Guaranty, try telling the landlord that the spouse who is not active in the. Personal guarantees are by definition unsecured, which means that they’re not. 2. Arizona is one of nine community property states, meaning that everything earned (or incurred) during the marriage is split down the middle. n. Important Fact About Personal Guarantees & Arizona Community Property. 33-431. Funding Circle: Best for long-term loans. Personal guarantees are attractive to creditors when the guarantor has assets to cover the. The property that secures a note is called collateral, which can be either real estate or personal property. gifts or inheritances that one spouse received, either before or during the marriage. A court may award each spouse a percentage of the total value of the property. Pursuant to A. [2] Four other states have adopted optional community property systems. By assuring that the property attached to the note is of sufficient value to cover the amount of the loan, the payee thus has a guarantee of being repaid. Referral number 520-623-4625.