If you are preparing to go through a divorce in Arizona, dividing your marital property will be a key part of the process. Divorcing couples must divide their marital property according to Arizona law (unless they have a prenuptial agreement that says otherwise), and this means that understanding how the law applies is a necessary first step.
So, what do you need to know?
There are several important aspects to Arizona’s property division laws; and, ultimately, you will need to rely on the advice of an experienced attorney to ensure that you are making informed decisions based on your individual circumstances. However, there are some general principles that apply across the board, and familiarizing yourself with these general principles will be helpful for speaking with an attorney.
What Divorcing Spouses Need to Know About Property Division in Arizona
With this in mind, here is an overview of the key property-related aspects of getting divorced in Arizona:
1. Arizona is an “Equitable Distribution” State
Arizona is an “equitable distribution” state. This means that divorcing spouses must focus on dividing their marital property based on what is fair under the circumstances at hand. While this often means dividing marital assets equally, an equal distribution isn’t required in all cases.
When you sit down with a divorce lawyer, your lawyer will be able to walk you through the relevant factors for determining what is “equitable” based on the circumstances of your divorce. Once you and your spouse have agreed on what is equitable under the circumstances at hand, then you can shift your focus to dividing your marital property.
2. Only Marital Assets Are Subject to Equitable Distribution
This brings us to the second key aspect of Arizona’s property division laws: In Arizona, only “marital” assets are subject to equitable distribution during the divorce process. For purposes of going through a divorce, spouses’ assets fall into one of two categories:
- Marital Assets – Marital assets are jointly owned by both spouses and subject to distribution during the divorce process.
- Separate Assets – Separate assets are owned by one spouse and are not subject to distribution during the divorce process.
While assets can qualify as “separate” for various reasons, in most cases, the majority of the assets a couple owns will qualify as marital property. With only limited exceptions, assets acquired during the marriage qualify as marital property, while the majority of spouses’ separate assets will be things that they brought with them into the marriage.
3. Identifying Your (and Your Spouse’s) Marital and Separate Assets is a Key First Step
Since marital assets are subject to distribution and separate assets are not, identifying your (and your spouse’s) marital and separate assets is a key first step toward making informed decisions about property division. You will want to create a list that identifies any assets you believe may be yours (or your spouse’s) to keep after your divorce. For more information on creating this list, you can read: 10 Tips for Creating a Property Inventory for Your Divorce in Arizona.
4. Special Assets Require Special Consideration
While dealing with certain assets can be relatively straightforward, special assets often require special consideration. For example, if your divorce will involve any of the following, you will want to address these specifically with your divorce lawyer:
- Privately-owned businesses (whether owned and operated by one or both spouses)
- Digital assets (including digital music and movie collections and cryptocurrency wallets)
- Items with sentimental value (including joint gifts and children’s artwork)
- Retirement accounts (which may require a qualified domestic relations order (QDRO))
- Pets (including any pets that you consider to belong to your children)
Oftentimes, it is these types of special assets that are the most difficult to address during the divorce process. But, as we discuss below, divorcing spouses have a variety of options available—especially when they are willing to be flexible—and there are various options for resolving property-related disagreements during the divorce process as well.
5. Divorcing Spouses Have Flexibility When it Comes to Property Division
While dividing a couple’s marital property can present challenges (especially when there are marital assets that both spouses want to keep), divorcing spouses in Arizona have a significant amount of flexibility to find a mutually agreeable solution. There is no single “right” way to divide marital assets; and, as long as divorcing spouses focus on achieving an “equitable” distribution, they can generally do what makes sense for their unique set of circumstances.
This is another area where an experienced divorce lawyer will be able to help. An experienced divorce lawyer will be able to offer creative ideas and insights gained from helping other couples divide their marital property. Your lawyer will also be able to help ensure that you are thinking about all relevant considerations and making informed decisions with your long-term best interests in mind.
6. There Are Options for Resolving Property-Related Disagreements During the Divorce Process
If you and your spouse run into any property-related disagreements during the divorce process, you will have a variety of options for finding a way to come to terms without going to court. For example, the collaborative law process can be highly effective for couples that have substantial marital assets, and mediation can be a highly effective tool for couples regardless of their financial circumstances.
7. Overlooking Assets Can Lead to Complicated (and Costly) Problems in the Future
The final point we’ll mention is that overlooking assets during the divorce process can lead to complicated (and costly) problems down the line. If you and your spouse fail to address any marital assets during your divorce, this is bound to lead to issues sooner or later. Regardless of the circumstances of your divorce, attempting to address ownership of marital assets post-divorce will almost certainly be more difficult than it would have been during the divorce process.
Need to Know More? Schedule a Free Consultation with an Experienced Phoenix Divorce Lawyer Today
If you are preparing for a divorce in Arizona and would like to know more about the property-related aspects of the process, we invite you to get in touch. To schedule a free consultation with an experienced Phoenix divorce lawyer at Weingart Family Law, please call 480-542-0099 or contact us online today.