During a divorce, marital property and debts must be divided. Arizona is a community property state, meaning all assets and debts acquired during the marriage are considered jointly owned by both spouses. While the court will typically divide marital property close to equally, it doesn't have to be a rigid 50/50 split. Furthermore, even though assets owned by one spouse before marriage or acquired by gift or inheritance remain theirs, the court may consider the couple’s overall financial picture, including separate property, to achieve a fair outcome in the division.

Entering a property settlement agreement, rather than leaving the division process in the hands of a judge, can have several advantages, including these:

• Control over division — A settlement agreement allows you and your spouse to decide how your assets and debts are divided, tailoring the outcome to your specific circumstances. This level of control is not achievable in a court-ordered division, where the judge has wide discretion. 

• Avoiding litigation — By focusing on solutions outside of court, you can avoid the emotional toll, financial strain and delays that often accompany litigation.

• Privacy —Financial details are often disclosed in court proceedings, which can be a significant concern for some couples. A settlement agreement allows you to maintain confidentiality regarding your financial situation.

• Flexibility — Through negotiation, you and your spouse can explore creative solutions that might not be available in court, such as phased asset division or spousal maintenance schedules.

• Preservation of relationships — Working together to reach a settlement agreement can foster a more amicable divorce, particularly when children are involved. When you can collaborate on a solution, it can help preserve a sense of respect and cooperation between you and your former spouse, which will be beneficial for in the post-divorce co-parenting environment.

Negotiating a mutually beneficial settlement agreement requires careful and thorough preparation. This includes making an inventory and valuation of assets as well as prioritizing them so that concessions can be made as needed. A divorce attorney skilled in Arizona community property laws will analyze your separate and marital assets and help work out a fair and equitable settlement agreement that protects your interests.

The divorce lawyers at Clark & Schloss Family Law, P.C. in Scottsdale represent Arizona residents in all aspects of property division, including settlement agreements. To arrange a free initial consultation, call us at 602-789-3497 or contact us online.