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Community Property

September 20, 2022 Cindy Best

Arizona is a community property state. As a general rule, property and debts acquired by either spouse during the marriage are presumed to be community property belonging to both spouses equally. That presumption can be overcome but the burden is on the spouse claiming otherwise.

In a divorce or legal separation the court assigns each spouse’s separate property to that spouse and divides community property equitably. Equitable does not always mean equal item by item but it generally means an overall fair division.

Community property analysis involves more than just identifying what was acquired during the marriage. Commingling, tracing, reimbursement claims, waste, business interests, retirement accounts, debt allocation, tax consequences, and valuation questions can all affect how the community estate is ultimately divided.

The community terminates when the divorce petition is served. Property acquired and income earned after service of process is generally sole and separate property of the spouse who acquired it.

 

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