Tucson Divorce Lawyers Assisting Clients With Property Division

At the Benavidez Law Group, P.C., we help clients divide their property and debts upon divorce or separation, including earnings and liabilities from employment, businesses, real estate, retirement accounts and pension plans, investment accounts and automobiles. Our goal is to ensure our clients’ financial security is protected during and after divorce proceedings.

Division of Assets And Debts In An Arizona Divorce

In Arizona, community property law applies in divorce and separation proceedings. Under this theory, there is a presumption that both parties have an equal interest in any property acquired during the marriage. This includes earnings, as well as tangible and intangible assets, such as:

• The family residence – One of the most difficult items to divide is the marital residence because, usually, the home is owned by both parties and secured by a mortgage, and it is often the most valuable asset of the marriage. In most cases, a plan must be devised that will either sell the home and divide the proceeds or require one person to promise to pay the mortgage until the sale or refinance of the home.
• Ownership of a business – If one of the parties owns his or her own business, a value must be attached to that business. Once a value is reached, there are various ways to divide that asset in the divorce. If the parties do not want to manage the business together, one party may take the business while the other party takes other marital assets of a similar value. If there is not enough marital property to offset the value of the business, there can be a cash payment or payment plan.
• Retirement accounts and pension plans – Many people think that their individual retirement plans are separate property and should not be divided as part of the divorce. The law is clear, however, that when one party pays into his or her retirement account during the marriage, such payments were made with community funds, for the retirement of the community, and that portion of the retirement is community property. There are various ways to divide retirement accounts, including placing a cash value on the settlement, or obtaining a court order that directs the company, at the time payment, to pay a portion to each person.
• Premarital, gifted or inherited property – Premarital, gifted or inherited property is considered sole and separate property and will not be divided in a divorce or separation proceeding. In many cases, this is not as simple as it would seem. For example, if separate property was comingled with community assets, then it may become community property. Conversely, community assets may have been used for the benefit of a party’s separate asset, giving the community an interest in the separate property.

Our lawyers understand that there is usually a great deal of emotion involved in a divorce, but it is especially important to view property division as a business decision. If you are contemplating marriage and want to clarify or avoid potential disputes about the separate or community nature of certain assets before marriage, you may want to consider a prenuptial agreement. If you are already married, you can set forth your respective rights to certain assets in a postnuptial agreement.

Frequently Asked Questions

We are here to help, so below are a few of the questions our attorneys see most often.

How is property divided in a divorce in Arizona?

Arizona is a community property state. This means that the goal is equal division, or a 50-50 split of all marital assets that the couple has obtained during the course of their relationship. These assets are considered community property. Examples could include income, real estate, investments and retirement benefits.

It is important to note that couples may own some separate property, such as assets that they brought with them to the marriage or direct gifts that they received independently of their spouse, such as an inheritance. Generally, couples get to keep separate property but have to divide community property. A common reason for debate is how to classify certain assets, and it is important to understand exactly what legal steps to take.

Are there exceptions to the equal division of property in an Arizona divorce?

There are some exceptions, such as inheritances or gifts that count as separate assets. Another potential exception is if it is proven that one spouse tried to hide assets or wastefully dissipate them. Some couples use a prenuptial agreement to define how assets should be divided.

One key detail to note is that some types of separate property can be commingled or mixed together, turning them into community property. If a person shares their inheritance with their spouse during the marriage, for example, it may no longer qualify as a separate asset.

Who keeps the house in a divorce in Arizona?

There are three possible options when determining what to do with the house during an Arizona divorce.

• The couple could sell the house and then equally split the earnings.
• One spouse may give up other marital assets in exchange for full ownership of the house, which could still satisfy community property requirements.
• Couples can technically continue to own the home jointly, even though they are divorced. There are some reasons when it makes sense, such as if the couple sees their home as an investment property or if they have children and they are going to use a child custody arrangement, such as birdnesting, which allows the children to continue living in the same home while the parents move in and out.

If you have any further questions, we would be happy to answer them at a consultation.

Contact Experienced Divorce Lawyers In Tucson

If you are facing divorce and have concerns about property division, please contact Benavidez Law Group, P.C. in Tucson. You need skilled and experienced legal counsel to protect your interests and your future security.