Arizona Property Division | AZ Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

When a couple divorces, everything from the marriage has to be resolved by the courts. Legally speaking, the courts must turn 1 household into 2 separate ones. Out of the many things that must be done, a universal task is property division, specifically Arizona property division.

No divorcing spouse should go to court without the guidance of a licensed Family Law attorney. Property division laws can be complex, vary from state to state and lawyers have the proper training and experience to tell the judge what a divorcing spouse wants and/or needs from the property division.

Property Division Divorce Laws in Arizona

The purpose of Arizona property division laws is to make sure that Arizona marital property is allocated equally to each spouse as Arizona divorce property, generally in a 50-50 split. If a 50-50 division would not be equitable, the courts may choose to divide the property in a more equitable fashion under Arizona case law.

Arizona is a community property state. This means that with regard to Arizona divorce assets, each spouse has a ½ vested interest in the property of the other spouse that should be considered in dividing Arizona divorce assets or Arizona divorce property. The only property that does not come into the court's distribution is that which is listed as an exception.

What is considered Marital and Non-Marital Property?

Under Arizona Revised Statute §25-211, Arizona marital property or community property is all property acquired by either spouse during the marriage with limited exemptions.

Non-marital or separate property is defined under §25-213 as:

Property acquired after service of a petition for dissolution of marriage, legal separation or annulment if the petition results in a decree of dissolution of marriage, legal separation or annulment
Property owned pre-marriage
Property acquired by gift, devise or descent

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The last step is either a 50-50 division or property or the most equitable division under Arizona Revised Statute §25-318(A).

Judges decide how a marriage's assets should be divided based on factors such as one spouse's waste of an asset and the length of the marriage. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equally among the spouses.
- Example 1: A joint savings account has $7,000. The court would most likely award $3,500 to each spouse.
- Example 2: A joint savings account has $8,000. One spouse contributed $6,000 and the other contributed $2,000. The amount will be divided equally or based on the court's determination that one spouse would not be treated fairly under a 50-50 split.
Retirement Plans: The amount accrued during the marriage is divided equally.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 20 of those years. The ex-spouse would most likely be entitled to 50% of the income acquired during the 20 year marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.
Vehicles: Divided based on the values as determined by the court. May be sold or given to a spouse outright.
- Example 1: A spouse's boat is no longer operational. The boat will most likely be sold with proceeds divided among the spouses or the boat may be given to a poorer spouse based on the court's discretion.
- Example 2: A car has a shared title. The car may be sold with the proceeds in a 50-50 split or the car may be given to a poorer spouse if a 50-50 split would be unfair.
Insurance: The portion paid for or acquired during the marriage is divided equally between the spouses.
- Example 1: One spouse has covered the other under employer provided health insurance. The other spouse is in poor health and could not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time and/or award money to the ailing spouse to get new coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. The spouse will be entitled to the portion of the benefits that accrued during the marriage.

Settling Disputes in a Divorce Case with Property and Asset Division

Under Arizona Revised Statute §25-318(P), a party may bring an action to enforce a court order to pay debts of the marriage. The court may transfer some of the delinquent spouse's property to the other spouse to compensate the paying spouse or impose sanctions on the delinquent spouse. However, the aggrieved party must bring the action within 2 years after the date the debt should have been paid in full

Generally, the trial court has great latitude in making decisions on property division and a higher court will not change the order unless there was an abuse of discretion in the trial court.

Help From an Arizona Property Divorce Lawyer

Retaining an Arizona property divorce lawyer is key to getting the fairest and most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

Thinking About Divorce?