FREQUENTLY ASKED QUESTIONS
PROPERTY & DEBT DIVISION
How Will Our Assets and Debts be Divided?
There is no fixed way to determine how you or the Court should decide how to divide your property, although Arizona law says the division should be "equitable," and equitable almost always means equal. Other factors include whether or not property belongs to the marital community or is the sole and separate property of one of the parties. If you and your spouse agree on a division of property, the Court will usually approve your written agreement. If you cannot agree, the Court will equitably divide your property and debts.
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What Happens to our Community Property?
In Arizona, property acquired during marriage from the parties´ incomes is called community property. Community property includes financial accounts, retirement and pension accounts, houses, land, business interests, loans owed to you, furniture and other tangible items, and any other items of value. As a general rule, community property is divided equally between the parties, although there are some exceptions. For example, if one of the parties wasted community property (by gambling, drugs, etc.), or hid community property, the Court may award the other party more property.
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What Happens to our Sole & Separate Property?
In Arizona, property acquired prior to marriage, though inheritance, and/or from gifts from other people besides their spouse, is presumed to be that person´s sole and separate property and is not divided. However, in some instances, the property´s nature as sole and separate may be changed. For example, if one party deposits sole and separate funds into a community account and such funds were spent, the items purchased will likely be presumed to be community property. If such funds are still in the account, it is presumed to still be sole and separate property. Another example is where a party has a house in their own name prior to marriage, but later places that house in both parties´ names. In such event, the house would generally be presumed to have become community property. There are always exceptions to the general rules. The firm suggests that you always consult with an attorney regarding your specific circumstances.
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What is the Difference Between Community Debt and Sole & Separate Debt?
In Arizona, debt incurred during a marriage is presumed to be community debt. The Court generally divides any such debt equally between the parties. Any debt incurred by a spouse before the marriage or after the separation of the parties´ remains the separate debt of that spouse.
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Is There Any Protection from Malicious Financial Maneuvers?
In Arizona, it is possible to protect yourself from your spouse´s potential malicious financial maneuvers. At the initial consultation, your attorney should review with you your assets and liabilities. If you have joint credit cards and your spouse is mean-spirited, you may be advised to terminate the credit card or lower the credit limit. If there are joint investment accounts, you may be advised to request that the financial institution either freeze the account, or request that both parties sign for any transactions in order to avoid a spouse´s unilateral looting of the account. In addition, you can protect yourself by gathering as much financial information as possible, including bank accounts, brokerage accounts, stocks, trusts, or life insurance policies, prior to meeting with your attorney. Although an Arizona divorce attorney has the ability to discover your spouse´s assets during the litigation, it is always easier and more cost-efficient to assemble existing documents in order to prevent a spouse from unilaterally transferring, depleting, or hiding an asset.
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As your attorney, we will always be available to answer any questions specific to your case. The above information is general in nature and nothing herein should be construed as legal advice. Please call our office at 480-491-5152 if you desire additional information or wish to consult privately with an attorney, or click here to contact us online.