Understanding New HOA Laws in Arizona

Many people are familiar with the idea of Homeowners Associations (HOAs) even if they have never owned a home in an HOA-governed neighborhood. Put simply, HOAs are groups of homes or properties that enjoy certain benefits and services in exchange for monthly or yearly fees that maintain common areas. While this may seem mundane, things are changing in Arizona-and these changes affect both families living in (or considering moving to) these communities.

Scott L. Levine is a family law attorney who assists his clients with divorce and cohabitation matters. The following article discusses what HOAs are, how they work, and how comprehensive new HOA laws in Arizona may impact family law and divorce matters.

HOAs are groups of homes or properties that enjoy certain benefits and in exchange for monthly or yearly fees that maintain common areas. These associations are meant to provide a way to keep common areas of properties uniform and well-maintained.

Because these associations are a group, HOA agreements fluctuate and change over time. With these changes come laws affecting HOAs and more specifically, the residents in these associations. Like all law, the HOAs are relevant to the people who live within their boundaries.

The HOA will take care of patching up common roads, maintaining common areas such as pools, and upholding the association agreement. Most importantly, the HOA secures the timely payment of fees, which can run into the thousands of dollars.

The answer is simple-these laws affect how things such as assets are divided in divorce or cohabitation arrangements. HOA laws are most applicable when referring to child custody matters, property division, and other lawsuits that could have a personal property component-namely, residential and rental properties.

Like all things in family law, the important thing is to keep up with local laws. Gathering the facts about local laws and ways that they can impact your family before you take legal action can save you tremendous time and stress.

While many of the laws are not directly related to households, the consequences can be harsh. When it comes to matters such as kids and property division, it is essential to understand the local laws and how they can impact your lawsuit.

Key Changes to HOA Law in Arizona

These changes to HOA laws in Arizona bring up questions about what will happen to the homes in these communities if divorce is being filed or a separation is being sought. Arizona exclusively divides property in the event of divorce-all assets and debts are split down the middle. New laws can change this process or make it run a bit smoother-but more importantly, these laws can affect how a judge sees assets during a divorce.

When a spouse wants to keep the home during a divorce, they must often prove that the home is of greater value to them than the soon-to-be ex will have, considering the marital estate as a whole. Modifications to HOA laws in Arizona may seem like they cannot be of concern during a divorce. However, understanding what the laws say about ownership disputes can be beneficial information for divorcing couples.

Enforcement can severely harm the parties it impacts-especially if some homeowners feel that their privacy has been invaded by people who do not live in the community. For families who have kids, this problem can occur while out with friends who lack the same privileges and amenities.

While these laws are not designed to have much impact on families in the strangest of situations, it is still wise to avoid breaking the law in your community. Familiarize yourself with these laws so that you, your HOA, and judges in your local courts are not left with a headache-especially if you are facing a divorce filing.

These changes to HOA laws in Arizona were recently instated. It is important to recognize what they offer to families living in these neighborhoods and the legal impact that they can have on divorcing couples. Scott L. Levine is a compassionate family law attorney who can assist families and individuals with concerns that may arise due to these laws.

Family law, divorce, child custody, cohabitation agreements-the possibilities go on. Regardless of the legal issue you are facing, Scott L. Levine can help you find the right plan to overcome these recent changes to HOA laws in Arizona.

The State by State Guide to Construction Retainage

The state by state guide to construction retainage shows how various states handle the challenging task of retaining a percentage of total financial outlay until a project is fully complete. Individuals engaged in construction often have a difficult time finding the funds to continue operations after receiving retainage, which creates a plethora of problems for contractors and builders. Families undergoing divorce also have their share of struggles, and often it’s difficult to navigate newly available divorce settlements along with increasingly elusive retainage. Thankfully, construction retainage laws by state can shine a light on divorce-related asset division laws.

Understanding retainage, which is defined as a portion of the total financial payout by a project owner, is crucial to sound financial planning during a divorce. In most cases, a predetermined percentage of the total value of a project is withheld until the construction lender or client deems the project “complete.” While the legalities surrounding retainage vary by state, the general concept holds that at least 5 percent of the total amount going out is withheld until the final work is completed. For contractors and builders, this can add up to thousands of dollars that are unavailable when needed.

Most individuals who receive retainage payments can vouch for the money already spent on individual projects, leaving them struggling to scrape together funds to continue working. Contractors with overwhelming expenses often view the retainage as an interest-free loan, while lenders and clients view the retainage as justifiable and even necessary. For couples filing for divorce, retainage can impact financial planning. The state in which the couple resides and the state laws governing the retainage can create additional challenges. It’s for this reason that consulting with a divorce settlement attorney is highly recommended.

Many family law attorneys have handled cases in which the contractor spouse has failed to budget for the initial retainer, either by neglecting to plan or by misplacing the documents that prove the retainage exists. One couple claimed that the wife’s take-home income of $70,000 was insufficient to cover their mortgage due to high credit card debt. The husband did not itemize his expenses, but he claimed to earn $120,000 annually. The situation put the wife in a tough position. If she had not signed the property settlement agreement, she would have been required to pay off the debts on her own. Thankfully, the parties were able to provide a certificate of completion that proved the retainage existed, and she only had to give up 5 percent of it.

The above case study is just one of two common scenarios that many family law attorneys encounter. The other is when the spouse with the retainage refuses to sign. This situation requires the assistance of a family law attorney who can assist the couple in uncovering the truth behind alleged retainages. Retainage could exist as an uncashed check, empty envelope or other seemingly legitimate form of proof. Without the signature of both spouses, the appear liable for any expenses. A complete analysis of all options, including appeal, is the best way to ensure that evidence is properly submitted and the divorce settlement is fair to both spouses.

The term retainage tends to bring negative associations to those in the construction industry who have experienced a lack of willingness on the part of a lender or client to make payment. However, for couples preparing for divorce, the term can have a different meaning. Regardless of why the retainage exists, it is a good idea to consult your family law attorney if you are planning on a divorce. Many attorneys are able to manage communications between spouses so that an agreeable outcome is reached. The results achieved by working with an attorney may be surprising.

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To date we have been a part of teams that have raised tens of thousands of dollars for suicide prevention and mental health awareness, and are honored to be able to partner with our Law School Alma Mater to continue expanding our dedicated efforts supporting a cause near and dear to us.

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