Since Arizona is a community property state, it’s easy to rush to the conclusion that all property held by either spouse gets divided evenly between them in a divorce. While a 50-50 split is often the goal or the agreed-upon arrangement, outcomes may vary.

In cases where property division is left to the court to decide, the judge is required to divide community property, joint tenancy and other property held in common “equitably, though not necessarily in kind.” Depending on the circumstances, a judge might decide that an uneven allocation of property is the best solution. This is similar to the equitable distribution method used in non-community property states.

Arizona judges consider many factors when deciding exactly how to split marital property between spouses, such as the following:

• The length of the marriage

• The standard of living during the marriage

• The terms of any valid prenuptial or postnuptial agreement

• The value of each spouse’s separate property

• The current income and earning potential of each spouse

• Financial misconduct, such as dissipation, that diminished the marital estate

• Both paid and unpaid contributions to the marital estate

Family law judges generally consider how each spouse helped improve the economic circumstances of the household. They take into account income and non-financial contributions, such as the domestic duties of a stay-at-home spouse.

Each spouse has an opportunity to present evidence during litigated property division proceedings to argue what is fair when dividing the marital estate.

Arizona’s statute states that marital misconduct does not impact property and debt division. However, there is an exception if either spouse wastes marital income or accrues debt in the course of relationship-damaging misconduct. Judges may consider intentional financial misconduct, such as the intentional destruction of marital property prior to a divorce filing or attempts to hide property to manipulate the outcome of the property division process.

A court may consider all debts and obligations, including taxes, that would become due on the receipt, sale or other disposition of property being divided. Some assets, like businesses or professional practices, may require expert valuations. Judges are unlikely to order a 50/50 split of equity in such enterprises. They are more likely to use other marital property or debts to balance the division. 

Spouses can better protect their interests by working with a divorce lawyer familiar with Arizona community property division. An attorney can also assist in devising a comprehensive property settlement that avoids contested proceedings before a judge.

Clark & Schloss Family Law, P.C. represents spouses preparing for divorce in the Scottsdale, Arizona area. Spouses worried about protecting their resources during divorce can schedule an initial consultation by calling 602-789-3497 or contacting us online.