One of the more challenging aspects of Arizona divorce law is dividing property when community funds have been used to pay down or improve a spouse’s separate property. This issue comes up often in cases involving homes purchased before marriage but paid for in part during the marriage. The Arizona Supreme Court addressed this exact scenario in Drahos vs. Rens.

Dodge & Vega can help you calculate the value of a community lien on yours or your spouse’s separate property home. The Drahos calculation takes into consideration the following factors:

• Community contributions to the principal balance, typically via mortgage payments (not including interest, taxes, or insurance).
• The property’s original purchase price (or its value at the time of acquisition).
• The appreciation in value during the marriage.

For example, imagine a home purchased before marriage for $250,000, with a value of $300,000 at the time of the marriage, and the community contributing $75,000 toward the principal over time. If the property appreciated (or increased in value) by $275,000 during the marriage (it’s worth $575,000 at the date of service), the formula produces:

75,000 + ((75,000 / 300,000) x 275,000) = $143,750 community lien.

This $143,750 community lien would then typically be divided equally between the spouses. There may be additional offsets related to real estate such as one spouse’s payments of community expenses after the date of service, which is calculated using a formula articulated in Bobrow vs. Bobrow, an Arizona Appeals Court case.

Why This Matters

If you or your spouse brought property into the marriage but used community funds to pay the mortgage or make improvements, the Drahos formula (and its refinements) can have a significant impact on the division of assets. Getting the calculation right is essential to protecting your financial interests — and avoiding costly mistakes.

As you can see, this can get complex. Reach out to Dodge & Vega if you have questions about how this formula might apply in your divorce, we can help you understand your rights and develop a strategy tailored to your situation to make sure you get everything you’re legally entitled to.

It’s important to note that each case is unique, and what works in one situation may not apply to another. It is advisable to seek personalized legal advice tailored to your specific circumstances when dealing with issues related to spousal support in Arizona.

            You will want to seek guidance from an experienced family law attorney who knows the ins and outs of spousal maintenance and how to maneuver the spousal maintenance calculator for the most accurate award.  Call Dodge & Vega for a free consultation today: 480-656-8333, or contact us here.