Helping You Achieve Your Property Division Goals
Dividing your property during a divorce can be complex, even though Arizona follows community property rules. Obtaining accurate valuations for your assets could greatly impact the amount of property you are entitled to receive. At the Maricopa County-based law firm of Donaldson Cunningham, P.C., we have an extensive understanding of the laws regarding the disposition of community and separate property. You can rely on us to use this knowledge to your benefit.
Contact our Chandler, Arizona, law office to schedule a free initial consultation with a compassionate and knowledgeable lawyer. We will lay out all of your options and answer any questions you have regarding your divorce.
Community Property Representation
According to Arizona property division laws, property is presumed to be community property if it is acquired during a marriage and is not received as a gift or part of an inheritance. Community property laws require the equitable distribution of property, but not always an equal distribution, making it important to have a lawyer in your corner who can protect your interests.
Separate property, presumptively, is property acquired before the marriage, property received during the marriage as a gift or obtained through an inheritance, or property acquired after the service of a petition for divorce or legal separation. Separation property is not subject to distribution laws as community property.
Courts will also look at the debts of the parties in making their determination of the most equitable way to distribute assets. We can analyze your property, debts and all of the other factors that may play a role in what assets you receive.
Establishing Your Own Property Division
In Arizona, courts are open to accepting a plan drafted by the parties regarding how the property should be split. At our law firm, we can help you create this agreement. We will work with you to help determine how to divide marital property fairly and what may be equitable considering your unique circumstances.
Frequently Asked Questions Concerning Property Division
Here are answers to common questions about dividing your property under Arizona law.
What is a Rule 69 agreement for Arizona property division?
Divorcing spouses can use a Rule 69 agreement to create a binding settlement without the judge deciding the issues for them. Under the Arizona Rules of Family Law Procedure, this document controls how they divide their assets, debts and property. Spouses must meet specific rules to make this agreement binding in Maricopa County.
A valid Rule 69 Agreement must satisfy at least one of the following conditions:
- The document is in writing and signed by both spouses and/or their lawyers.
- The spouses read the terms onto the court record before a judge, commissioner or court reporter.
- The spouses audio-record the agreement with a court-appointed mediator or settlement officer present.
Once a judge approves the agreement, the property division terms become a final court order. Arizona law treats property division settlements as final. They are generally binding and presumed valid. A court will typically only set aside or change these terms if a spouse proves a defect in the agreement, such as fraud, coercion or duress.
How is a family business or professional practice divided in Maricopa County?
Arizona courts divide a family business or professional practice by finding its community value. The judge will typically rely on the opinion of a business valuation expert to find this number. In some cases, each party hires their own expert witness to provide their opinion of value. Once the community’s value has been determined, the court typically requires the operating spouse to buy out the other spouse’s share. This buyout typically happens through cash offsets or planned payments based on the net community value.
How does a community lien apply to premarital real estate assets?
A community lien applies when one spouse owns a home before marriage, but the couple uses community income to pay the mortgage or fund updates. The community gains a financial interest in the property while the original spouse keeps the title. Arizona courts use a specific legal formula as a starting point to figure out this financial interest.
The formula for a community lien involves two main parts:
- Principal reduction: Payments made toward the principal mortgage balance that reduce the obligation owed. The portion of payments that apply toward interest, property taxes and homeowners insurance do not count toward the principal reduction.
- Appreciation of value: The market value growth of the home during the marriage is taken into consideration.
Determining the community’s share takes into consideration the contributions that increase the equity by reducing the principal mortgage obligation, as well as the increased equity due to the property value appreciation. This formula allocates the equity in the property between the separate portion that stays with the title owner of the property and the community’s portion that is divided between the parties. In some casesjudges have the flexibility to adjust the formula to achieve substantial justice for the parties.
Knowing these property division rules helps you prepare for the financial facts of the divorce process.
Contact Us Regarding Property Division And Divorce In The Phoenix Area
If you have questions regarding the distribution of your assets during your divorce, contact our Arizona law firm at 480-792-9770 or send us a message. We are dedicated to serving the interests of our family law clients.