- 22 - an interest in the New Mexico ranch. (Hereafter, the Bard property and its predecessors, the Windmill Ranch and the Dunlap property, but not the New Mexico ranch, will be referred to as the “successor properties”.) We have determined that, upon acquisition, decedent’s interest in the New Mexico ranch was his separate property. Under Arizona law, when one spouse uses separate property to purchase new property, the new property remains separate property. Nace v. Nace, 448 P.2d at 79. Thus, unless the character of decedent’s interest in either the New Mexico property or any of the successor properties changed to a community interest, the Bard property was decedent’s separate property. Petitioner has failed to show such a change. The various deeds and other documents set forth or discussed in our findings of fact speak against a change. John Hughes, who represented decedent and petitioner in certain of the transactions here involved, testified that decedent had told him that decedent’s interests in the New Mexico ranch and Dunlap property were community property. On the other hand, Robert Harman, a real estate broker who brokered the exchange of the Dunlap property for the Bard property and the purchase of the 125-acre Bard parcel, testified that decedent had told him that his interests in those properties were to be his sole and separate interests. Petitioner testified that she believed that she had a community interest in the New Mexico ranch and the successor properties,Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011