Is Arizona a community property state? Yes. Under A.R.S. 25-211, property either spouse acquires during the marriage is community property, owned equally by both, except property received by gift, inheritance or devise, or acquired after a divorce petition is served (if it results in a decree). The IRS lists Arizona among the nine community property states, with California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
What it means for a home: a house bought by either spouse while married is generally community property, both spouses must sign to buy, sell or refinance it, and the way you title it at closing decides what happens at the first death.
Data note: Rules come from the Arizona Revised Statutes (Title 25 and A.R.S. 33-431), IRS Publications 551 and 555, and the Arizona REALTORS resale contract. Examples are illustrative. No market statistics are included in this post.
Community Property Basics
What Counts as Community Property (A.R.S. 25-211)
- Property either spouse acquires during the marriage, including a home bought with earnings during the marriage
- Each spouse has equal management and control of community property (A.R.S. 25-214)
What Stays Separate (A.R.S. 25-213)
- Property owned before the marriage
- Property received by gift, devise or descent during the marriage
- The increase, rents and profits of separate property
- Property acquired after service of a divorce, legal separation or annulment petition that results in a decree
Both Spouses Sign (A.R.S. 25-214(C))
- Joinder of both spouses is required to acquire, sell or encumber an interest in real property, other than a lease of less than one year
How Married Couples Take Title in Arizona
Arizona law (A.R.S. 33-431) and common practice give couples three main options:
Community Property
- Each spouse owns a one-half community interest
- At death, a spouse's half passes by will, trust or beneficiary deed, or by intestate succession
Community Property With Right of Survivorship
- Created by express words in the deed (A.R.S. 33-431(C))
- At the first death, the surviving spouse takes the whole property
- Either spouse can end the survivorship right by recording an "affidavit terminating right of survivorship". The community interest stays intact
Joint Tenancy With Right of Survivorship
- Also requires express words; the survivor takes the property
- Available to married and unmarried co-owners
Want to name who inherits the home without probate? See our guide to the Arizona beneficiary deed.
Sole and Separate Property
A married buyer can take title as sole and separate property. The Arizona REALTORS contract notes that a disclaimer deed from the other spouse may be required. Title companies and lenders will ask about this early.
If You're Not Married
Community property rules apply to spouses. For unmarried co-buyers, A.R.S. 33-431(A) says a deed to two or more people creates a tenancy in common by default, meaning no automatic survivorship. If you want the survivor to take the home, the deed must expressly say joint tenancy with right of survivorship.
Community Property in a Divorce
- The court assigns each spouse's separate property to that spouse
- It divides community, joint tenancy and other jointly held property equitably, though not necessarily in kind, without regard to marital misconduct (A.R.S. 25-318)
- Property acquired outside Arizona is treated as community property if it would have been community property here
Equitable doesn't always mean selling. Options include a buyout, a sale, or keeping co-ownership for a period. A family law attorney should guide that choice.
Community Property and Taxes When a Spouse Dies
IRS Publication 551 explains one of the most valuable features of community property:
- When either spouse dies, the total value of the community property, including the surviving spouse's half, generally becomes the basis of the entire property
- The rule applies if at least half of the community interest is includible in the decedent's gross estate
- IRS example: community property with an $80,000 basis and a $100,000 fair market value at death gives each half a $50,000 basis
A full basis step-up can sharply reduce capital gains if the surviving spouse sells. Learn more about capital gains on an Arizona home sale, and talk with a tax professional about your situation.
“Vesting is one of the quickest lines on the escrow paperwork and one of the most important decisions in the whole purchase. I ask every married couple to talk with their attorney or CPA about community property with right of survivorship before closing. It's much easier to choose correctly now than to fix it later.”
— Elizabeth Vijan, Tackett Team, eXp Realty
FAQ: Community Property in Arizona
Is Arizona a community property state?
Yes, under A.R.S. 25-211.
Does community property apply if you're not married in Arizona?
No. Unmarried co-owners default to tenancy in common.
What is community property with right of survivorship in Arizona?
Spousal title where the survivor takes the whole property.
Do both spouses have to sign to sell a house in Arizona?
Generally, yes, under A.R.S. 25-214(C).
Buying or Selling as a Couple?
I'll coordinate with your title officer so vesting, signatures and any disclaimer deed are handled before closing day, with no surprises at the signing table.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate
Let's Talk · Call or text 602-885-7752
Sources: A.R.S. 25-211: Community property · A.R.S. 25-213: Separate property · A.R.S. 25-214: Management and control · A.R.S. 25-318: Disposition of property · A.R.S. 33-431: Grants to two or more persons · IRS Publication 551: Basis of assets · IRS Publication 555: Community property · Arizona REALTORS: Residential Resale Purchase Contract (sample)
Disclaimer: General information, not legal or tax advice. Consult an Arizona attorney and a tax professional about your situation. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch