One of the biggest worries and frustrations of couples pursuing divorce is the division of assets. This one question can also cause additional conflict in an emotionally charged process. Among the many aspects of divorce that the state government can regulate is the division of property and assets. In Arizona, the laws governing disposition of property are Title 25 Marital and Domestic Relations, Chapter 318: Disposition of property; retroactive; notification to creditors; transfer of debt; contempt of court.
This Statute stipulates that, in legal proceedings of divorce or separation, the court may assign the sole property of each spouse to the spouse. Courts can also share any common assets, which is why Arizona is referred to as a “Community Property” state. Joint assets can include all property and debts obtained from the beginning of the marriage until the date of separation. Property acquired by one spouse outside of Arizona is still considered community property, if the property is legally considered community property if it was originally acquired in Arizona.
Formal property and debt settlements between spouses are called Marriage Settlement Agreements or property awards decided by the Arizona Superior Court. The division of property is carried out without regard to marital violations.
Debt is not something that many people consider when they think about the division of marital property. Courts may consider all debts and obligations related to the property in their final judgment. Debt includes taxes (accrued or accrued) that are part of the sale of any property. There are certain exceptions to certain properties, including those in Title 33 Property, Chapter 8: Acquisition of Homes and Personal Property.
Note that decisions made by courts regarding the distribution of debts are binding on the spouse and not the creditors. Since the debt is created between the individual and the creditor (i.e. a bank, credit card company, medical company, retailer, etc.), the court’s decision does not necessarily relieve the spouse of liability from meeting the debt obligations.
If the spouse so requests, the court may issue a lien against the other spouse’s property in an attempt to secure payment of the debt the court ordered the spouse to pay. This can be done to secure the payment of certain types of debt, including:
• Interest or equity that one spouse has in the property
• Community debt that must be paid by the spouse by the court
• Child allowance
• Spouse maintenance
Title 25, Chapter 318 Arizona Marital and Domestic Relations also allows courts to consider damages and judgments resulting in the spouse’s criminal conviction. It refers to a situation where another spouse or child is the victim of “unfair expenses, vandalism, concealment or falsification of the disposition of the community, joint rent or other jointly owned property.”
Any jointly owned property, which is not included in the settlement terms, will become joint property. This means that both spouses will retain half ownership or interest in the property. In addition, the judgment or final judgment will describe, in legal terms, the property affected by the provisions (including prospective and retrospective operations of the property).
The complexity of the division of property is not determined by the reasons for the divorce being filed. Whether in disputed divorce or not, this determination is generally made on a 50/50 basis, unless there are exceptional circumstances. Because of the processes involved and the potential for conflict, many couples prefer to reach a private settlement, with the help of a divorce attorney.
