When Arizonans decide to get divorced, they might have to deal with property division, spousal support, child custody and child support. Once they have worked out agreements about each of these issues, they might also want to think about life insurance in case the higher-earning spouse dies following the divorce.
Arizona is a community property state, which means that all property and debts acquired during marriage belong to both spouses. When couples file for divorce in a community property state, each spouse is entitled to half of all community property. By contrast, many other states operate under the principle of equitable distribution, which means that marital assets should be split fairly but not necessarily 50-50.
A divorce financial specialist may be a useful professional for some Arizona couples to work with during a divorce. In particular, people with complex assets or who are unfamiliar with the marital finances may benefit from their expertise. This can include experience with such topics as forensic accounting, business valuation and the tax implications and long-term financial effects of divorce settlements.
When an Arizona couple chooses to end their marriage, one or both parties often have some form of company-sponsored retirement plan. Every retirement account represents a marital asset, and the departing spouses must divide the funds as part of the divorce. Calculating the value of a retirement account can become complicated, especially for defined benefit plans.
Cryptocurrency emerged as a new form of asset in 2009 with the development of Bitcoin. This digital currency often creates difficulties during divorces. Cryptocurrency by its design can be hard to trace, which forms an opportunity for a spouse in Arizona to hide the asset. The values of various cryptocurrencies fluctuate as well. Pinning down the value of a cryptocurrency asset for the purposes of the divorce settlement can be challenging.
Individuals going through a divorce in Arizona may be missing out on information that could impact the financial outcome of their divorce. It has long been the stereotype that it is the man who is interested in hiding financial assets away from his wife in a divorce. However, those old assumptions do not necessarily hold true in modern society. Many wives earn as much or more money than their husbands. In a number of marriages, the wife is the one who is primarily responsible for the finances, so she has greater opportunities to hide resources in the months that lead up to a divorce.
Opening a joint bank account was once something couples did as a matter of course shortly after getting married, but almost one in three married millennial couples in Arizona and around the country prefer to keep their money in separate accounts. Young people often do this because they believe that keeping their finances separate will protect them in a divorce, but this is rarely the way things work out in the real world.
Small business owners in Arizona who get a divorce may face a number of complex financial issues. The business may be the biggest asset the couple has. In some small businesses, it can be difficult to separate business and personal expenses, but this is necessary in order to get a value for the company for the purposes of property division. It is also necessary for determining child and spousal support.
Arizona couples who are getting a divorce should make sure they do not neglect insurance issues. First, if one person is covered under the other person's employer-sponsored health insurance, it might be necessary to seek a new plan. While it is possible to extend coverage on the employer's plan through COBRA for up to three years, this may be the most expensive option. The person playing the premium has to pay the employer's share as well as an administrative fee. Furthermore, this is still a temporary solution at best.
Arizona residents going through divorce know that negotiating financial issues can be challenging. Because of the emotions that are involved in separating from a spouse, determining what to do with the family home, dealing with pressure from family members and handling issues related to child custody, it's easy for an individual to feel overwhelmed and to give in to despair. It is recommended that a person concentrate their energy on solving the problems are in front of them as opposed to allowing their emotions to dictate the decisions they make. This is especially true when discussing financial issues.