Legal Question in Family Law in California

My brother is divorcing in california. I deeded my property located in arizona to him for colateral on a personal loan from him while he was married in california.

The 3 deeds I had he and his wife sign are as follows. A warranty deed,beneficiary deed, and disclaimer deed.

Now his wife seems to think the property in Arizona is community property under california law.

Am I protected by the disclaimer deed she sighned and had notarized?


Asked on 4/29/10, 2:00 pm

1 Answer from Attorneys

Anthony Roach Law Office of Anthony A. Roach

Arguably, the situation that you just described is what is known as an equitable mortgage, at least under California law. I have not seen an equitable mortgage since law school. That means that you actually own the property, and either your brother has a mortgage lien on your property, or your brother and his wife have a mortgage lien on your property. You have what is known as a choice of law problem, however, in that the property is located in Arizona, and I cannot answer whether or not Arizona recognizes equitable mortgages.

Although you list a series of deeds, I assume that you are referring to Arizona deeds, and you do not list which deed was from which party and when. If the last deed was his wife, disclaiming any interest in the property, and was given to your brother, then arguably, under California law, she has no interest in the property, and his equitable mortgage is therefore his separate property.

Is there any reason why you did not use a mortgage or deed of trust to encumber your property in Arizona, rather than risk problems later with a deed, absolute on its face?

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Answered on 5/04/10, 5:25 pm


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