Can You Get Reimbursed for Helping Your Spouse’s Business in an Arizona Divorce?

If your spouse owned a business before marriage and you contributed time or money to help it grow, you may be wondering: Do I get anything back in the divorce?

The answer in Arizona is: Maybe — through a reimbursement or equitable claim.

Arizona law allows a spouse to ask for reimbursement when community assets or effort increased the value of the other spouse’s separate property. This applies to real estate and, with some adjustments, businesses too.

Let’s break down how this works.

What Is a Shickner Claim?

A Shickner claim is named after the Arizona case Shickner v. Shickner (1970). It applies when:

• One spouse owns a home or other property separately (usually from before the marriage),
• And community funds (like wages earned during the marriage) are used to pay down the mortgage or improve the property.

In that case, the community may be owed reimbursement or a share of the equity in that property. This ensures one spouse doesn’t walk away with an unfair windfall from community contributions.

What About a Business Owned Before Marriage?

While Shickner applies to real estate, similar principles apply to businesses, just with a few more moving parts.

If your spouse owned a business before marriage, it’s technically separate property. But if:

• Community money was used to fund operations, or
• One or both spouses’ efforts helped the business grow,

Then the community may be entitled to reimbursement for its contributions — even though the business itself is still separate property.

How Arizona Courts Handle These Claims: Van Camp vs. Pereira

To figure out how much the community should be reimbursed, Arizona courts use methods known as Van Camp and Pereira.

🧮 Van Camp Method

Used when the business grew mostly because of the business itself, not the spouse’s efforts (e.g., passive investments, market growth).

• The court assigns a reasonable salary to the working spouse.
• That salary is treated as what the community “should have” received.
• Anything beyond that stays separate.

Example: Spouse earns $200,000 a year managing their premarital business, and the court decides $200k is a fair salary. The community already got its share through salary, so the rest is separate.

🧮 Pereira Method

Used when business growth was driven by the spouse’s personal effort.

• The court assigns a reasonable return on the separate business value as of the marriage date.
• Any growth beyond that return is considered community property.

Example: A business worth $100,000 at the time of marriage is expected to grow 5% annually as separate property. If it grows more than that, the excess belongs to the community.

Can You Use the Shickner Rule for a Business?

Yes — Shickner’s principles apply, even if the technical method is different. The common thread is:

If community effort or money increased the value of one spouse’s separate asset, the community may be entitled to compensation.

Whether it’s a house or a company, Arizona law tries to make sure both spouses are treated fairly at divorce.

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What Should You Do If This Applies to You?

If you're going through a divorce in Arizona and think you helped grow your spouse’s separate business or paid down a premarital mortgage, you may have a valid reimbursement claim.

📞 Contact Larson Law Office today at 480-582-5228 or book a strategy session online to protect your financial interests.