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Distribution Of Property

One of the very first things you should do if you are contemplating a divorce is to conduct a thorough, accurate inventory of what you own and what you owe.

Separating your assets and your obligations into the categories of “pre-marital” and “marital” is also a wise decision.

Arizona is a “community property state” which means that property either spouse owned before marriage and the income it has produced are separate property. So are separate gifts, inheritance, property accumulated after separation. Property accumulated during marriage is to be split equally.

One of the biggest assets that a couple may own is there home. What happens to the family home will depend on the facts of each case. If the wife and husband can agree between themselves on what should happen to the home, the court will accept their decision. If the wife and husband cannot agree, the court will decide.

If the parties own a house, condominium, or cooperative apartment and they have children who are still living at home, the law favors giving the house to the spouse who will have primary custody of the children, if it is affordable to do so. This promotes continuity in the lives of the children as well as in the life of the spouse who will live in the house.

If the parties cannot afford to keep the house, it may be sold and the proceeds divided (or perhaps given to one party). Division of money from sale of the house generally is made after paying off the mortgage and the costs of the sale such as commissions to the real estate brokers, transfer tax, and attorneys fees.
In some cases, there is a middle-ground approach: The spouse who has primary custody of the children will have a right to live in the house for a certain number of years, such as until the youngest child graduates high school. At the end of that time, that spouse will buy out the other spouse's interest or sell the house and divide the proceeds.

A variation on these arrangements is to give one spouse a right to buy out the other spouse for a fixed period of time, such as thirty days. If the first spouse cannot buy out the other spouse (perhaps because he or she was not able to obtain financing), then the second spouse has an equal period of time to buy out the first spouse. If neither spouse is able to buy out the other, then the house will be sold and the proceeds divided.

When only one spouse is going to occupy the house after a divorce, arrangements need to be made for payment of expenses related to the house. A common arrangement is for the party living in the house to pay the mortgage, property taxes, utilities, and routine repairs. If the spouse who is not living in the house retains an interest in the house (such a right to share in the proceeds when the house is sold at a later date), both parties might share in the costs of major repairs. Major repairs might be defined by the nature of the expense (repair of roof, replacement of appliance) or by dollar amount--for example, any repair costing more than $200.

DEBTS OF THE MARRIAGE

AZ Divorce Settlements

One of the best reasons to take an inventory of what you owe is to plan on how you want to divide the debt and your ability to pay off the debts. Often times the income of the family will be stretched because of maintaining two residences, adding to the financial burden.

The court will also take into consideration how much each party earns. The wage earner earning the largest salary will most likely pay the larger share of the “community debt”. However, neither party is responsible for the others “sole and separate” debt.

The court may assign certain community debts to one spouse or the other. Please be aware that even if a debt is assigned to your spouse your creditors are not bound by any court orders or agreements that you may have reached in this case. Another words, should your spouse fail to pay their debt, you are still held responsible to pay it.

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Thinking of Divorce?

In most marriages, a spouse bases a part of his or her identity on the marriage relationship. At the time of dissolution, a period of time is required to establish a new identity as a single person. This is an often painful process of self discovery.

What You Can Do Now

You can speed the restructuring process by acknowledging and accepting your feelings, by keeping communication open with your spouse, your children, and trusted friends and relatives, and by seeking counseling when necessary.

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