Dividing Community Property Fairly, Not Equally.

It might be easier for a judge to divide divorcing spouses’ property with a chain saw, but even then a judge is bound to divide community property fairly.  Under Arizona law, the statute requires a judge to divide community property and debts “equitably.”  Generally, appellate courts have defined “equitably” as an equal division, but not always. 

An example where a judge may not divide the community property and debts equally is where one spouse earns substantially more money than the other spouse.  A judge may give the lower-income spouse less credit card debt to equalize the parties’ finances post-divorce.  It is possible a judge may award greater assets to the lower-income spouse, like the family’s house, if it would be “equitable.” 

Finally, difficult decisions have to be made when one spouse owns a business, makes the money, and the other spouse does not have sufficient education, training or experience to run the community property business.  Here, a judge may award the business to spouse running the business, but require this spouse to compensate the other spouse with some form of property equalization payment(s).  The value of their business becomes important, and often it is necessary to hire an expert to determine the business’ value, for each spouse to receive what’s fair.

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