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Hatcher v. Hatcher

199 Ariz. 154, 933 P.2d 1222 (1996)

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Hatcher v. Hatcher

Arizona Court of Appeals
199 Ariz. 154, 933 P.2d 1222 (1996)

  • Written by Liz Nakamura, JD

Facts

Julia Hatcher (plaintiff) and Marvin Hatcher (defendant) married in 1980. Marvin subsequently opted into the disability-insurance program offered by his employer, and the premiums were automatically deducted from Marvin’s paycheck. In 1984, Marvin lost his right arm in a work-related accident. The disability-insurance policy paid Marvin a $120,000 lump sum plus 54 months of structured payments. Marvin purchased a home and an apartment complex using a portion of the disability payments. Marvin took title to both the home and the apartment complex in joint tenancy with Julia. Julia filed for divorce in 1991 and argued that Marvin’s disability payments, and the home and apartment complex purchased using those payments, should be classified as community property because Marvin acquired the disability-insurance policy during the marriage using community funds. Marvin countered, arguing that the disability benefits were his separate property. The trial court held that (1) Marvin’s disability payments were his separate property and (2) despite being held in joint tenancy, the home and apartment complex purchased using the disability payments were also Marvin’s separate property because there was no evidence that Marvin intended to gift either to the community. Julia appealed.

Rule of Law

Issue

Holding and Reasoning (Thompson, J.)

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