Property Division Lawyers in Tempe

In marriage, two people come together, build a life together, earn money together, buy property, and, over time, intertwine nearly every aspect of their financial lives. What many people do not fully realize, however, is just how intertwined those finances truly become until the marriage comes to an end. When divorce becomes a reality, so does the division of property. Contact the seasoned Tempe divorce lawyers at Weingart Family Law to learn more about how property division works in Arizona and how our legal team can help protect your hard-earned assets.

Arizona is a Community Property State

Arizona is what is known as a community property state. This phrase gets thrown around quite a bit, and many people assume they know what it means. However, there is often some confusion surrounding the concept.

The general rule is that all property acquired during the marriage is presumed to belong equally to both spouses. It does not matter whose name is on the deed. It does not matter who earned more money. It does not matter whose paycheck funded the account. If it was acquired during the marriage, it is typically considered community property.

This is very different from what is known as equitable distribution, which is the system followed in many other states. In equitable distribution states, courts divide marital property in a way that is considered fair, but not necessarily equal. Judges may weigh a number of different factors, such as earning capacity, financial need, or contributions to the marriage, before determining how assets should be split.

Arizona does not start from that same place. Instead, the presumption here is that community property should be divided equitably, which in practice generally means equally. Courts will first focus on identifying what is community property and what is separate property. Only after that determination is made does the actual division occur.

What is Considered Community Property in Arizona?

Community property generally includes assets and debts acquired during the marriage. This presumption applies even if only one spouse’s name appears on the account or title. Some of the most common examples of community property are as follows:

Income earned by either spouse during the marriage
Real estate purchased after the marriage began
Retirement accounts and pensions accumulated during the marriage
Businesses started or significantly grown during the marriage
Vehicles purchased with marital income
Investment accounts funded with earnings during the marriage
Credit card debt and loans incurred while married

What is Separate Property?

Separate property is, in contrast, property that belongs to one spouse alone and is not subject to division in a divorce. Separate property generally includes the following:

Assets owned by a spouse before the marriage
Inheritances received by one spouse during the marriage
Gifts specifically given to one spouse
Certain personal injury awards for pain and suffering
Property designated as separate in a valid prenuptial or postnuptial agreement

However, even separate property can become complicated. If separate property is commingled with community property, or if community funds or efforts increase the value of separate property, a portion of that increased value may be considered community.

For example, if one spouse owned a business prior to the marriage but the business grew substantially during the marriage due to community labor or financial investment, the growth in value may be subject to division.

How is the Marital Home Divided in an Arizona Divorce?

For many families, the marital home is both the largest financial asset and the most emotionally-charged one. It is where children were raised, and memories were made. And yet, under Arizona law, it is still subject to the same community property principles as other assets.

If the home was purchased during the marriage usingcommunity funds, it is generally considered community property, even if only one spouse’s name appears on the title.

There are several ways the home may ultimately be handled. They are as follows:

One spouse may choose to refinance the mortgage and buy out the other spouse’s share of the equity
The home may be sold, and the net proceeds divided equally
One spouse may remain in the home temporarily before it is sold at a later date (this is particularly common when minor children are involved)

The key factor is equity, which is determined by subtracting the outstanding mortgage balance from the fair market value of the property.

What Happens if My Spouse is Hiding Assets?

Few things create more anxiety during a divorce than the suspicion that a spouse is hiding money or property. Whether it involves undisclosed bank accounts, underreported business income, or secret investments, these concerns are not uncommon. The law requires both parties to fully disclose their financial information. If a spouse fails to do so, the court has tools available to uncover the truth. Those tools may include the following:

Formal discovery requests for financial records
Subpoenas issued to banks, employers, or third parties
Depositions conducted under oath
Forensic accounting analysis in complex financial cases

If the court determines that a spouse intentionally concealed or wasted community assets, it may award a greater share of the remaining property to the other spouse as a form of compensation.

Contact Our Phoenix Metropolitan Area Property Division Lawyers

Here at Weingart Family Law, we are dedicated to helping spouses protect their assets and start the next chapter of their lives on a solid financial footing. If you have additional questions or would like to speak with our property division lawyers about your case, please don’t hesitate to contact Weingart Family Law for an initial consultation today.