Ramsay v. WHEELER-RAMSAY

232 P.3d 1249, 224 Ariz. 467, 582 Ariz. Adv. Rep. 4, 2010 Ariz. App. LEXIS 79
CourtCourt of Appeals of Arizona
DecidedMay 20, 2010
Docket1 CA-CV 09-0045
StatusPublished

This text of 232 P.3d 1249 (Ramsay v. WHEELER-RAMSAY) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ramsay v. WHEELER-RAMSAY, 232 P.3d 1249, 224 Ariz. 467, 582 Ariz. Adv. Rep. 4, 2010 Ariz. App. LEXIS 79 (Ark. Ct. App. 2010).

Opinion

OPINION

SWANN, Judge.

¶ 1 In this dissolution proceeding, David Ramsay (“Husband”) appeals from the trial court’s division of property and debt concerning real property located in Queen Creek, Arizona, and Rocky Point, Mexico, as well as the division of community credit card debt and bank accounts. In addition, Husband appeals from the trial court’s award of spousal maintenance to Victoria Wheeler-Ramsay (“Wife”).

¶2 We hold that real property acquired during the marriage does not necessarily lose its community character when one spouse encumbers the property without joinder of the other spouse. We further hold that a debt so incurred may be a community debt. Finally, we hold that the Maricopa County Spousal Maintenance Guidelines have no force of law, and cannot be used to attack an otherwise proper award of spousal maintenance. For the reasons that follow, we affirm.

FACTS AND PROCEDURAL HISTORY

¶ 3 Husband and Wife married on July 18, 1998. On August 22, 2006, Husband filed a Petition for Dissolution of Marriage, and ef-feeted service of the petition on Wife on September 1, 2006. The decree of dissolution was filed more than two years later, on November 25, 2008.

¶ 4 During the marriage, Husband worked as a pilot for a Canadian airline, and as of July 1, 2008, Husband’s year-to-date United States taxable income was $154,469.16 — an average of $25,744.86 per month. 1 Wife received a bachelor’s degree in engineering in Costa Rica. But because she does not have the American certifications necessary to work as an engineer in the United States, she could not perform engineering design work. Accordingly, Wife worked part-time for AZTEC Engineering, performing engineering calculations for design projects. For the first six months of 2008 she earned $21,-102.19 — an average of $3,517.03 per month.

¶ 5 The trial court found that pursuant to A.R.S. § 25-319, Wife was entitled to spousal maintenance because “Wife will not have sufficient property to provide for her reasonable needs.” To determine the amount and duration of the spousal maintenance, the court considered the factors enumerated in A.R.S. § 25-319(B). After considering these factors, the court awarded Wife spousal maintenance in the amount of $2,700 per month, beginning December 1, 2008, for a total of twenty-one months.

¶ 6 Before and during the course of the marriage, Husband and Wife acquired six different properties and were in the process of acquiring a seventh as the dissolution proceedings progressed. At issue in this appeal are properties located in Queen Creek, Arizona (“the 187th Way Property”), and in Puerto Peñasco, Mexico (“the Rocky Point Property”).

¶ 7 With respect to the 187th Way Property, Husband and Wife executed an original Deed of Trust on July 20, 2005, as “wife and husband,” securing a loan amount of *471 $343,450. On the same day, Husband and Wife executed a second Deed of Trust securing a loan amount of $64,350 as “wife and husband.” On July 26, 2005, both parties signed a warranty deed, acknowledging that the property was titled as community property with right of survivorship. On February 6, 2006, Husband and Wife refinanced the second mortgage and received loan proceeds of $174,000. As a result, the existing second mortgage was fully paid off by the new loan and the parties received a $110,000 cash payout. The parties used the cash payout as follows: $36,128.56 was used to pay down debts on Husband’s Ranier residence; $17,000 was used to pay community tax obligations for 2004 and 2005; $39,000 was used as part of the down payment for the Rocky Point Property; and $2,000 was paid to Husband.

¶ 8 On November 22, 2006, three months after Husband filed the Petition for Dissolution, Wife refinanced the 187th Way Property a second time, receiving loan proceeds of $528,000. Although the property was titled as community property, Wife purported to refinance the property as a married woman dealing with her sole and separate property. 2 This refinance, which was a negative amortization loan with a cap of $580,800, bundled the first and second mortgages into one mortgage.

¶ 9 In June 2007, Husband and Wife entered into an agreement to lease the 187th Way Property for $2,000 per month. Although the rent was to be paid to Wife, the lease agreement named both Husband and Wife as owners of the property and both signed the lease agreement as lessors.

¶ 10 The trial court found that the 187th Way Property was purchased jointly as an investment property, with a down payment of $21,529 obtained through the use of two community credit cards in Wife’s name. With respect to the second refinance, the court found that Husband was aware of the refinancing, raised no objections to it, and did not sign a disclaimer deed. The court found that “the 187th Way Property remains owned by the community” and “that the existing obligations on the property should be borne jointly, although the mortgage technically obligates Wife solely.” Accordingly, the court ordered the parties’ joint tenancy ownership of the property to be converted to a tenancy in common with the filing of the decree. To this end, the court ordered the parties to take the necessary steps to add Husband as an equal obligor on the existing mortgage.

¶ 11 With respect to the Rocky Point Property, Husband and Wife signed a Promise of Trust Agreement to purchase a condominium for $390,000 on November 21, 2005. They paid a down payment of $117,000 in addition to a $6,000 fee for a golf membership. Of the $117,000 down payment, $39,000 was funded by monies taken from the first refinance of the 187th Way Property, and the remaining $78,000 was paid by Husband from his sole and separate property. Husband and Wife encountered problems with the transaction and did not close on the property. Accordingly, much of the down payment was forfeited.

¶ 12 The trial court found:

To the extent this property (or property right) remains owned by the parties jointly at the time of the Decree, such ownership shall be converted to a tenancy in common by this Decree. Each party shall own an equal one-half interest in whatever property rights [are] held by the community at the time of this Decree. Furthermore, the parties shall be equally responsible for any debts or liabilities associated with this property at the time of the Decree, or that arise in the future.

¶ 13 In their joint pretrial statement, the parties agreed that at the time of the service of the Petition for Dissolution, the balances in their bank accounts totaled $47,592.01. At trial, Husband testified that after he filed the petition, Wife withdrew $13,150; accordingly, Husband contended that Wife was only enti- *472 tied to approximately $9,000 of the pre-petition account balance. Husband testified that after the date of service he also withdrew money from the joint checking account and that both parties deposited money into the joint account.

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Cite This Page — Counsel Stack

Bluebook (online)
232 P.3d 1249, 224 Ariz. 467, 582 Ariz. Adv. Rep. 4, 2010 Ariz. App. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramsay-v-wheeler-ramsay-arizctapp-2010.