Arizona Property and Debt Division Attorneys
When your most cherished properties and assets are on the line, you need a law firm that you can trust. The team at Desert Legal Group are experienced Arizona high-asset and complex property lawyers who can help you navigate the state’s property and debt division process.
What Happens to Property and Debt in a Divorce?
In Arizona, a judge will not finalize a divorce until both parties come to an agreement on important matters like child custody and the division of the marital estate. The concept of marriage as a 50-50 partnership is well understood in this country, and that principle applies to how divorces are handled in court.
Arizona operates under the principle of equitable distribution of assets and debts, which might sound straightforward, but it can lead to many different outcomes in court. Equitable is not the same as equal, so while some divorces may ultimately result in a 50-50 division of assets and debts, that’s not necessarily the sole focus of the courts.
In common practice, equitable refers to fairness and justice. This may mean that resources or opportunities are distributed in a way that considers individual differences and needs, aiming to achieve a fair outcome for everyone.
The Importance of Attorney Negotiation in Your Property and Debt Division Case
It is important to remember that agreements between the divorcing parties are preferable to litigation. A judge may only become involved in decision-making regarding asset and debt matters when both parties are unable to agree to the terms of a divorce on their own.
When both parties are able to agree on the terms of the division of a marital estate, the courts will generally honor that agreement as long as it is fair to both parties. Both parties’ family law attorneys must ensure the final agreement is fair, even if there isn’t an even split of assets and debt.
As you navigate the often complex debt and property division process, our Phoenix property division lawyer will be there to guide you each step of the way. Having legal representation can ensure that your rights are protected and that your voice is heard by the court. Representation by our Arizona property division attorneys can also help you reach a settlement without the need for extensive litigation.
Community Property Versus Separate Property
Your division of assets lawyer can be an important resource as you divide your property and debts into community and separate property. Arizona laws require both parties to a divorce to disclose all assets, properties, and debts during the divorce process.
divorce as well as all separate property that will be kept safe from division. Community property refers to any property acquired during the marriage, with exceptions for certain gifts and inheritances. From the state’s vantage point, community property belongs equally to both spouses and must be divided equitably.
Common examples of community property include:
- Wages and salaries
- Real estate
- Vehicles
- Investment Income
- Retirement accounts
- Business income
- Rental income
- Joint bank accounts
- Household furnishings and appliances
- Debts
The idea of “owning” debt may seem odd at first, but accounting for debts is just as important as disclosing assets and properties during a divorce. Some spouses bring debt into the marriage, while other forms of debt are jointly acquired during marriage. The state of Arizona prioritizes assigning debt equitably during the divorce, just like property.
Any debt that was acquired before marriage or after the filing for divorce would likely be categorized as separate debt. This means the person who acquired that debt outside of marriage is solely responsible for the debt.
Separating a marital estate into community and separate properties can be time-intensive and stressful; what’s more, if you have significant assets, you will likely require the services of an appraiser, financial consultant, and a high-asset divorce attorney. That’s why Desert Legal Group helps clients by providing guidance and even direct accounting help when needed. If you have sizable assets that you believe should be classified as separate property or require the division of businesses, real estate, and more, our property division lawyers can help you obtain valuations and assemble evidence to demonstrate ownership.
What to Expect During the Division of Your Marital Estate
The division of a marital estate is often one of the more time-consuming aspects of the court process of dissolving a marriage. Your Phoenix property division lawyer can help reduce the burden on you by explaining the steps involved and providing direct help along the way.
Attorney Communication
Accounting for every asset and debt you and your spouse own is no easy task. When both spouses are able to work together to calculate those disclosures, the process can move more quickly. Unfortunately, in many contested divorces, the parties may not be able to work together. In those cases, lawyers can communicate on behalf of the spouses to move the process forward.
Mediation
When both parties cannot agree on how to divide the marital estate, one remedy could be mediation, where a professional third-party mediator works with both parties to resolve lingering areas of disagreement. If that fails, a judge may ultimately make any remaining decisions on behalf of the spouses based on what is the most fair and equitable to both parties.
Negotiations
Negotiations often play an important role as both attorneys work to resolve outstanding areas of disagreement. For example, one spouse may have a keen interest in keeping their home. In return, a concession in another area may be expected.
Both parties could consider any lawful request as part of the negotiation. For example, the other spouse may ask to have their name removed from the title and pay for half of the equity in the home. When both parties agree to the terms of a divorce, the lawyers involved can include those details in the final divorce decree.
The Role of Marital Agreements
A marital agreement can strengthen a marriage by promoting open dialogue and transparency about finances. Coming to an agreement about who maintains which properties and assets in the event of a divorce also shows maturity on the part of both parties, especially when the viability of a business or resources for children from a previous marriage is at stake.
A marital agreement can significantly impact how a marital estate is divided. As long as the agreement was lawfully drafted and executed with the full consent of the parties involved, the binding contract can guide the estate division process.
A pre-existing marital agreement can often greatly simplify the divorce process by reducing or eliminating contention between the parties when it comes to the estate division process. If you have questions about how your marital agreement could affect your divorce, contact our marital agreement attorneys directly.
We have helped many clients draft and execute marital agreements, so we are well-versed in this area of family law. Many types of people can benefit from a marital agreement, and contractual agreements are not solely for wealthy people.
Parents who have children from a previous marriage may wish to protect their children’s inheritance through a marital agreement. Business owners or people who own significant shares of a company may wish to shield those companies and workers from financial uncertainty by designating those assets as separate property not subject to division in the event of a divorce.
Property and Debt Division FAQs
Property and debt division in Arizona does not have to be stressful with the help of an experienced division of assets lawyer. At Desert Legal Group, we believe that our clients should be well-informed about their cases and the laws that may apply to them. If you still have questions after reading these FAQs, one of our lawyers will be happy to schedule a consultation.
There is no easy way to account for every asset, debt, and property of a marital estate, but the process can be made much more straightforward with the help of a division of assets lawyer. Our skilled attorneys can explain the estate division process and the documents you’ll need to gather. Our team will work with you along the way to facilitate a timely accounting of your community and separate properties.
You should not have to divide any separate property you owned before you were married. Anything that you acquired before the marriage or after the divorce process started should be considered separate property, with the exception of deliberately commingled assets that were separate property and were made into marital property by adding a spouse to a deed, transferring ownership, or adding them to a joint account. Our property division attorneys can help you define your separate property to ensure its protection during the division process.
The mandatory wait time for divorce in Arizona is 60 days. Theoretically, a couple could be divorced on the 61st day following the filing of a petition for divorce that both parties received soon after. In reality, many divorces take much longer, as complex divorce cases require additional time to account for assets and properties. Contested divorces also may take much longer than the 61-day minimum. When both parties cannot agree to the terms of a divorce, a judge will make a ruling on the outstanding disagreements.
It is not uncommon for one or both spouses to be uncooperative during a divorce. This is where the quality of your legal representation can make a difference. Attorneys understand both the law and conflict management, and can help you resolve disputes during negotiation or mediation to avoid the need to participate in litigation.
If your soon-to-be-ex is uncooperative to the point that it unnecessarily delays the divorce, their actions could ultimately work against them in court. Both parties are expected to make good-faith efforts to resolve disagreements.
Rely on Desert Legal Group to Streamline Your Property and Debt Division Process
Whether you are facing a divorce with a relatively straightforward property and debt division process or you and your soon-to-be-ex-spouse have a high net worth and extremely complex assets, an experienced property and debt division attorney is crucial to streamlining your case and avoiding extensive litigation. Desert Legal Group is a premier Phoenix family law firm with years of experience representing divorcing individuals throughout the divorce process, including property and debt division. Contact our firm to schedule a consultation today.