Full question:
How are assets divided in the case of a divorce in the state of Arizona?
- Category: Divorce
- Subcategory: Property Settlements
- Date:
- State: Arizona
Answer:
In Arizona, which is a community property state, property acquired during the marriage is generally divided equally upon divorce. Property owned before the marriage remains with the original owner. The court will distribute community property equitably, without considering marital fault, after identifying each spouse's separate property (Arizona Revised Statute 25-318).
Community property typically includes earnings and assets acquired during the marriage, as well as debts incurred. Separate property includes gifts or inheritances given solely to one spouse, personal injury awards, pension proceeds that vested before marriage, and properties purchased with a spouse's separate funds. A business owned by one spouse before marriage remains separate, although its increase in value during the marriage may be considered community property.
Disputes often arise over which assets are community property. If separate property is mixed with community property and cannot be distinguished, it may all be deemed community property. The primary residence is often the largest asset in a divorce, and its division can be complex, especially with children involved. Courts may favor the custodial parent retaining the home, which may require compensation arrangements for the other spouse.
Pensions are usually the second-largest marital asset. If there are sufficient other income sources, courts may leave the pension with the earning spouse. However, under federal law, a Qualified Domestic Relations Order (QDRO) can require pension administrators to divide the pension between spouses.
When a couple owns a business together, determining its division can be complicated. The court or couple must decide who retains the business and its valuation, which may require expert evaluation. If there aren’t enough marital assets to compensate the non-retaining spouse, a forced sale or long-term buy-out may be necessary.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.