The Question:
My husband cashed an insurance check from a homeowner’s claim and then left. I had no idea. Now the insurance company is asking why no repairs have been made and where the money is. What do I need to do?
RJ Says:
This is an issue that can be addressed in a divorce proceeding. If he wrongfully took and kept the insurance proceeds, the family court can address that as part of the division of property and debt.
If you intend to remain married, however, this likely falls outside the jurisdiction of the family court. In that situation, you may still be held jointly responsible for any financial consequences resulting from his actions.
Arizona is a community property state. That means most property and debt acquired during the marriage is considered jointly owned. In a divorce, those assets and obligations are divided approximately equally.
Filing and serving a Petition for Dissolution creates what we often refer to as a “line of demarcation.” From that point forward, new debts and obligations are generally no longer treated as community in nature. There are exceptions, and whether they apply here would depend on additional facts.
I would need to know more about your situation to give precise guidance.
An experienced family law attorney can help you evaluate your options, protect your financial interests, and determine the best course of action. We offer free 30-minute consultations to discuss your matter in detail and develop a plan.
Call (602) 256-7575 to schedule your consultation with an experienced Phoenix family law attorney.