Does Asset Acquisition Determine the Character of Property? | AZ FAQ

Generally, an asset receives its characterization as separate or community property at the time of acquisition. That designation is not altered as a result of a subsequent marriage. However, when community funds are used to pay a mortgage or used to make improvements to the separate real property owned by one spouse, the non-owning spouse is entitled to reimbursement for the community money spent on the other spouse’s separate property.