Is a business considered marital property in Arizona?

In Arizona, marital property laws dictate how property gets divided during a divorce. These laws also determine the treatment of a business owned by either spouse. Understanding whether a business is considered marital property is important for couples going through a divorce. Community property Arizona is a community property state. This means that anything acquired during the marriage is marital property and belongs to both spouses equally. This includes income, real estate and other assets. Property owned before the marriage or acquired by gift or inheritance usually remains separate. Business as marital property A business started or acquired during the marriage is generally considered marital property. This is true even if only one spouse runs it. Both spouses have an equal interest in the business, regardless of who is more involved. Valuing the business Determining the value of a business is a complex process. It involves evaluating assets, income, debts and future earning potential. Financial experts often help with this to provide an accurate and unbiased valuation. This process ensures a fair division of the business between the two spouses. Dividing the business There are several ways to divide a venture in a divorce. One spouse may buy out the other’s interest, or they may decide to sell the business and split the proceeds. Sometimes, both spouses continue to co-own it even after the divorce. The division method depends on the couple’s unique circumstances. Knowing whether a business is marital property helps in planning for the future and ensures both spouses receive a fair share during a divorce.The post Is a business considered marital property in Arizona? first appeared on Ashley Donovan Law, PLLC.