One of the top priorities for many divorcing individuals is making sure they walk away with the assets that matter to them most. In Arizona, property division in a divorce follows specific guidelines based on whether the property counts as community or separate property.
Understanding the difference between these two types of property is important for anyone going through a divorce in the state.
Community property
Arizona is a community property state, meaning that most property acquired during a marriage belongs equally to both spouses. This includes earned income, real estate, vehicles and many other types of assets. Regardless of who earned the money or whose name is on the title, anything acquired after the wedding day generally counts as community property. When a couple divorces, community property is typically divided equally between both parties.
Separate property
Separate property consists of assets that belong solely to one spouse. This includes property owned by a spouse before the marriage, gifts received by one spouse during the marriage and inheritances. Any income or assets generated from separate property also belong to the spouse who owns that property, as long as the property is not commingled with community property. For example, if someone inherits money and keeps it in a separate account, it remains separate property.
Commingling property
Commingling happens when separate property and community property become mixed. This often occurs when a spouse deposits inheritance money or pre-marriage savings into a joint bank account. Once commingled, it can be difficult to prove the property’s separate nature, which may result in it becoming community property.
Protecting separate property
There are careful steps to take to maintain separate property during a marriage. Keeping assets in individual accounts and not mixing them with community funds is one way to ensure that they remain separate. Documentation, such as account statements or records showing the origin of the property, can also help establish that the property should not be divisible in a divorce.
Disputes over asset division can significantly lengthen and complicate divorce proceedings. Couples who understand marital ownership of property, and the steps to take to protect their individual property, can bypass many harrowing obstacles during divorce.