Property division is a central consideration during divorce proceedings, one that can set the tone for an individual’s financial stability post-divorce. For divorcing couples, establishing clear priorities when dividing property is critical, as making this effort not only impacts the approach one takes to the process and the terms of a former couple’s divorce settlement but also helps to shape the long-term financial health of each spouse.
Arizona is a community property state. As a result, most property acquired by a couple during marriage is considered to be jointly owned. Additionally, most couples will need to divide their property relatively equally, unless the spouses involved can reach an alternative agreement without judicial intervention. Therefore, setting priorities as to what each spouse really wants out of the process can help to ensure that there is room to negotiate while pursuing a focused, favorable outcome overall.
When identifying priorities for the property division process, long-term financial security should be at the forefront. For instance, keeping the family home might have sentimental value, but it also comes with upkeep costs, taxes and potential market fluctuations. Sometimes, liquidity is more beneficial for long-term stability than retaining high-maintenance assets. Individuals should also consider future values, not just the present worth of specific assets, by looking at potential appreciation or depreciation.
Setting property division priorities also means being prepared to negotiate and compromise. Identifying what matters most can help when making concessions elsewhere to achieve the most favorable outcome. This process involves not just understanding one’s own priorities but also anticipating those of one’s spouse. By setting priorities clearly – and early – one can be more strategic throughout the process.