Property division is an important component of the divorce law, which defines how marital property should be divided between spouses. In Phoenix, the family law judge determines who gets what under the property settlement agreement. Understanding how property division works can help you better prepare for your divorce and what to expect.
How Property Division Works in Phoenix
When a marriage is dissolved in Arizona, all marital property and debt are distributed between spouses. The divorcing couple can decide whether they want to divide the property on their own through a property settlement or have a court divide. In both cases, the property division process comprises three steps:
- Determining which property and debts are marital, and which ones are separate
- Determining the value of the marital (community) property
- Distributing marital property as deemed appropriate
During the property division process, only marital property is eligible, and it comprises the assets and debts that the couple has acquired during their marriage. In this regard, separate property remains with the owner and is not distributed during the divorce. It includes the property that a spouse already owned before they got married. This also includes the property that a spouse acquired after a marriage has ended, inherited, or received as a gift.
Key Considerations in Property Division
The Arizona property division law requires judges to divide community property equitably during divorce. This means that the property will be a near 50/50 split. However, the term equitable does not always mean that the property is divided equal to the dollar. In most cases, the court considers fairness based on several factors such as the value and type of asset. However, marital conduct, including a spouse’s poor behavior or infidelity does not influence property division.
Another notable issue that often arises in property division is community waste. This issue applies when one spouse uses community funds for non-beneficial purposes, such as substance abuse, gambling, or extramarital affairs. If community waste is proven, then the other spouse may receive reimbursement for their share of the wasted funds.
To simplify the process, you can use a methodical approach that makes property division manageable. Simply make a clear inventory to help you with the legal process and ensure productive negotiations:
- Identify your property: Start by compiling a list of all assets and debts
- Categorize them: Determine items that fall under community property and the separate ones
- Value the property: Assign a fair market value for every item in your list
- Document: gather all relevant paperwork, including deeds, titles, and account statements
Is Arizona a Community Property State
Arizona is a community property state in which the law states that both spouses own all the property and debt they acquired during their marriage. During divorce, this community property is divided equally between the husband and wife. However, a few exceptions can change this 50-50 distribution. For instance, the couple may have a valid prenuptial agreement that outlines the specific ways the marital property should be divided.
Several properties count as marital in addition to houses and cars. These include:
- Real estate or raw land
- Businesses
- Bank accounts and savings
- IRAs and pensions
- Work wages and other income
- Retirement accounts or 401(k) plans
- Ownership interests
- Dividends
- Investments
- Furniture
- Art
- Valuable items like antiques, jewelry, and rare collectibles.
Any debt incurred by the couple during marriage is also considered communal and is divisible between the spouses. This included even instances when such debt benefitted only one of the spouses. For example, one spouse may have used credit to buy new hobby tools. This debt will be shared between the couple even if the other spouse never used the tools.
Why You Needed a Competent Divorce Lawyer in the Property Division
Property division is one of the most challenging phases of getting a divorce. Many divorcing spouses tend to be anxious about how their property will be divided and its impact on their finances. Some even become distrustful or angry towards their former partner, turning an already complex legal process into something more contentious.
A competent divorce attorney will protect you and your property during this part of your divorce. They will help you understand the property division process in Phoenix, ensuring that your rights and assets are secured. They will also effectively represent you in a difficult dispute for a favorable outcome.
Get Legal Support for Your Marital Property Division
While several things may be going through your mind during divorce, protecting your assets and finances should be a minor priority. A divorce lawyer will help you overcome the hurdle by skillfully setting up legal strategies for you. Reach out to us at Schill Law Group to see how our experience can help you during the entire process of marital property division.
