It depends on a variety of factors. Arizona is a community property state. This means the law generally considers all assets and debts gained during marriage as owned equally by both spouses. In a divorce, the court will generally split these equitably, if not equally.
While assets you owned before marriage or received as a gift during marriage usually remain yours in a divorce, the court may consider them community property in some instances.
When it is commingled with marital assets
Commingling assets means you mixed your separate property with community property. This often happens when you deposit your own money into a joint account or use it for shared expenses. For example, if you inherit money and pay the mortgage on your family home with it, a court might view that money – while it was originally your separate property – as community property. In a divorce, courts often treat commingled assets as community property, even if they started as separate property.
When it is improved or maintained using marital funds
This means you used marital or shared finances to improve or maintain your separate property. For example, if you use money from a joint account to renovate a house you owned before marriage, your spouse may gain a claim to some of the house’s increased value. Courts often consider these contributions when deciding how to divide real estate, such as the family home.
If it appreciated in value during the marriage
“Appreciation” refers to an increase in the value of an asset over time. If you owned a business before marriage, and both spouses worked to make it more valuable, a court might view the increase in value as subject to division.
It depends on whether market forces alone caused the appreciation or if marital efforts played a role. This can include direct labor contributions, such as working in the business, or indirect contributions, like managing the household to allow the other spouse to focus on the business. While one might retain ownership of the original asset, they may have to pay the other a portion of the increase in value.
Protect your assets
If you’re unsure about your rights or facing challenges regarding your assets during a divorce, it may be time to seek legal counsel.