Divorce is rarely simple, especially when it comes to dividing the life you’ve built together. Arizona follows specific rules and principles when it comes to splitting assets. Arizona is a community property state, which means the law generally views assets and debts acquired during the marriage as belonging equally to both spouses. However, divorcing couples should understand how the courts actually apply this rule in real cases. 

At Blake & Pulsifer, PLC, we understand that dividing assets during a divorce can be one of the most stressful aspects of the process. Our team of experienced Arizona family law attorneys can help you understand how Arizona’s community property laws might affect your divorce. Whether you’re dealing with high-value assets, complex financial situations, or disputes over property division, we can help you achieve a fair outcome.

How Arizona Courts Divide Marital Assets

In Arizona, the courts follow a community property rule when dividing assets in a divorce. This means that most of the property and debts acquired during the marriage belong equally to both spouses, regardless of who earned the money or whose name is on the title. However, this doesn’t mean that everything is automatically split 50/50. There are many factors that the court considers when dividing property.

What Is Community Property?

Community property includes things like:

  • Homes and real estate that were acquired during the marriage.
  • Bank accounts, retirement accounts, and pensions earned during the marriage.
  • Vehicles, furniture, and other personal property bought with marital funds.

Even if only one spouse’s name is on the title or the account, the court will still treat it as community property if it was acquired during the marriage. Anything one spouse had before the marriage or anything they received as a gift or inheritance during the marriage is typically considered separate property and isn’t divided in the divorce.

How Do Arizona Courts Handle Property Division?

While Arizona courts generally follow the 50/50 rule for dividing property, it’s not always that simple. If the court finds that an equal division is unfair or unrealistic based on the couple’s situation, it can order an unequal division of assets. This can happen if one spouse has special needs, a significant earning gap, or if the marriage is particularly long or short.

The court also considers things like:

  • The length of the marriage – Longer marriages may have more complex asset divisions.
  • The financial situation of each spouse – This includes income, debts, and earning capacity.
  • Contributions made by each spouse – This includes both financial contributions and non-financial contributions, like caring for the home and children.
  • Any misconduct – If one spouse has wasted marital assets through reckless spending or bad financial decisions, the court may adjust the division.

The goal of the court is to ensure a fair and equitable division, not necessarily an equal one. This means that sometimes the division might look different from what one spouse expected, but the court focuses on fairness.

What Happens with Debts?

Just as the courts divide property, they also divide debts that were incurred during the marriage. This includes mortgages, credit card debt, car loans, and personal loans. In Arizona, debts are treated similarly to property in that they are generally equally divided unless there’s a reason to adjust that.

If one spouse has significantly more debt than the other, the court might allocate more of the debt to the spouse who incurred it. For example, if one spouse ran up a large amount of credit card debt without the other’s knowledge or consent, the court may order that spouse to pay a larger share of that debt.

Property Division in Complex Cases

In some divorces, the division of assets can be more complicated due to high-value property, business ownership, or unique financial assets like stock options. These types of assets require special attention because they may have a complex market value or might be difficult to divide.

For example, if one spouse owns a business, determining its value and how to divide it can be tricky. The court might need to assess the business’s worth, and in many cases, this requires the help of a financial expert, such as a business appraiser. 

High-value assets like real estate, luxury items, or investments must also be carefully appraised to ensure a fair division. Similarly, stock options or retirement accounts with fluctuating values can add another layer of complexity.

A financial expert and a divorce lawyer can work together to make sure all your assets are valued appropriately at the time of the divorce.  

Contact Our Tempe Chandler Law Firm

Dividing assets in a divorce isn’t just about splitting up property—it’s about making sure both spouses are treated fairly based on what they contributed and the situation of the marriage. While the process can be complicated, knowing the basics of Arizona’s community property laws can help you feel more confident and prepared.

At Blake & Pulsifer, PLC, our Tempe divorce lawyers can make sure your assets are divided fairly and according to state law. Call us today at 1-480-838-3000 or fill out our confidential contact form.