How to Establish Sole and Separate Property in Arizona
When it comes to divorce, property division can be a complex and contentious issue. Arizona is a community property state, meaning that most assets acquired during the marriage are considered community property and are subject to equal division in a divorce. However, there are exceptions to this rule, and understanding how to establish sole and separate property is critical to ensuring a fair and equitable division of assets in a divorce. In this article, we will explore the topic of establishing sole and separate property in Arizona and provide valuable insight into this important legal issue.
What is Sole and Separate Property?
Sole and separate property refers to assets that are owned by one spouse and are not subject to division in a divorce. Under Arizona law, property that is considered sole and separate includes:
- Property owned by one spouse before the marriage
- Property received as a gift by one spouse, either before or during the marriage
- Property inherited by one spouse, either before or during the marriage
- Property acquired by one spouse after the date of legal separation
- Property designated as sole and separate property in a written agreement between the spouses
It is important to note that even if property is considered sole and separate, it may become community property if it is commingled with marital assets. For example, if one spouse inherits money and deposits it into a joint bank account, that money may be considered community property and subject to division in a divorce.
Establishing Sole and Separate Property
Establishing sole and separate property can be a complex process, especially if assets have been commingled with marital assets. Here are some important steps to follow to establish sole and separate property:
Keep Good Records
Keeping good records is essential to establishing sole and separate property. This includes keeping records of any property owned before the marriage, as well as any gifts or inheritances received during the marriage. It is also important to keep records of any transactions involving these assets, such as bank statements, deeds, and bills of sale.
Do Not Commingle Assets
To keep assets separate, it is important to avoid commingling them with marital assets. This means keeping separate bank accounts, avoiding joint purchases, and being careful not to use funds from joint accounts to pay for sole and separate property expenses.
Use a Prenuptial Agreement
A prenuptial agreement is a legal document that can help establish sole and separate property before the marriage even begins. This type of agreement outlines which assets will be considered separate property and can help avoid disputes in the event of a divorce.
Get Expert Help
Establishing sole and separate property can be complex, and it is important to work with an experienced and knowledgeable attorney who can help guide you through the process. An attorney can help you identify which assets are sole and separate, as well as provide valuable guidance on how to keep these assets separate from marital assets.
Conclusion
Divorce can be a difficult and emotional process, and property division is often one of the most contentious issues. Understanding how to establish sole and separate property is essential to ensuring a fair and equitable division of assets in a divorce. By keeping good records, avoiding commingling assets, using a prenuptial agreement, and getting expert help, you can help protect your sole and separate property in a divorce. If you are facing divorce and need help with property division, contact a knowledgeable Arizona divorce attorney today.
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