One of the states that adheres to community property laws strictly is Arizona. Under such laws, all the assets and debts acquired during marriage are regarded as being owned jointly and are usually treated equally between the spouses in a divorce.
The issue of community property division in a divorce can greatly influence one’s financial future so it is very decisive to understand it. Most people are surprised to learn that the vast majority of assets acquired during the marriage are considered joint property and must be divided equally.
What will happen to assets or other properties that you brought into the marriage, received through a will, or received as a gift? There are differences that could have a significant influence on your case.
Let’s discuss these matters to help you better understand community property laws and their role in property division during divorce.
Understanding Community Property Laws
Dividing assets during a divorce can be both emotionally and legally complex, according to a community property division lawyer.
It is most important to remember community property laws as you are divorcing, as they are about the disposition of your property.
Property acquired during marriage is mostly regarded as community property in jurisdictions where community property laws are followed. Both the husband and wife are entitled to community property, regardless of who earned it or may have paid for it.
Knowing that anything can be considered community property, from the house to the bank accounts to retirement funds, will give you some peace of mind and confidence during a difficult period. By knowing the laws concerning your rights and responsibilities, you can better handle your worthwhile endeavors throughout while ensuring an equitable asset division.
Identifying Community vs. Separate Property
Understanding the concepts of community and separate assets helps in achieving fair division of assets when a divorce takes place. Anything acquired during a marriage, like the purchase of the family home or deposits into a bank account, is considered a community asset and denotes the contributions or efforts of both parties.
Meanwhile, separate properties are anything the spouse already owned before marriage or acquired as gifts or inheritances, remaining with the one spouse.
Classifying properties into community and separate property is usually easier said than done, especially when it comes to mixed assets. If you focus on the item itself, its origin, and timing, some aspects may be evident.
Clarifying whether an asset or property is community or separate provides peace of mind and restores confidence toward starting anew in life.
The Process of Valuing Marital Assets
Valuing marital assets is a necessary step in the divorce process that very much determines your financial future. You want to have all supporting documents, like bank statements or deeds for property and investment accounts, in your hand so you can clearly present what they both own.
Go for an appraisal from professionals for very precise valuation purposes, especially for complicated assets like real estate or businesses.
A good valuation includes furniture and collectibles of a fairly good value in many instances.
Open communication between spouses also smooths the process and promotes mutually agreed-upon valuations. Understanding the worth of your marital assets will help negotiate a fair settlement equal to what you both put into your common life.
Exceptions to Community Property Division
Community property division applies to most assets acquired during a marriage, but there are important exceptions to know about. For instance, inheritances and gifts received by one spouse typically remain separate property, meaning they won’t be divided in a divorce. Before the marriage, assets are usually deemed to be separate assets unless they have been converted from separate into community property during the marriage.
If you or your partner have created a trust or another legal arrangement, it may preserve certain assets from being divided. The knowledge of these exceptions will greatly facilitate the difficult property division and also tell you which assets you will keep. Knowing these intricacies is very important, as it allows a party to protect its interests in this tough period.
Legal Assistance and Mediation in Property Division
While managing the tricky process that is the division of properties during a divorce, it would be great to have some assistance from the legal or mediation side.
Hiring a family law attorney is also an investment in your peace of mind. They provide an extra layer of protection for your interests in divorce proceedings, says a divorce attorney in New York City, informing you of your rights and making sure that they are well looked after. The presence of attorneys is important during the process of understanding all the legal matters.
Mediation is a method that facilitates the meeting of the parties and their open communication and collaboration for the finding of solutions they can all accept. This way of solving a dispute allows for the development of good relations and mutual understanding between the parties.
You can decide which option to go for, whether it is contacting a lawyer or opting for mediation. Remember that just the fact that you have that support behind you gives you a great deal of power. You have the right to be treated fairly, and asking for help is the first step to getting there.
