Divorce brings many changes, particularly to finances. And as many Arizona residents have discovered, one of the financial aspects that can be significantly affected by divorce is retirement. While divorce often means having to restructure retirement plans, the process can be completed while still protecting some of the benefits each person receives.
If one person in Arizona hopes to keep the home in a divorce, that person should treat the process with the same diligence that would be used in purchasing a new home. Emotional reasons, especially if there are children, often influence this decision, but it is important to make sure it is a good financial move.
There are many ways a person might discover that his or her spouse is hiding assets during a divorce in Arizona. This might be done because a spouse is trying to avoid sharing assets during the divorce, conceal an affair or both of these things. For example, one woman discovered that her husband was having an affair with a woman in another state. He had set up a separate entity there of a company he had in his home state. The company's address was the woman's apartment.
Couples in Arizona who decide to divorce may face difficult decisions about the family home, especially when children are involved. One of the most obvious ways to handle real estate in a divorce is to put the home on the market. The mortgage can be paid off with the proceeds, and the remainder can be equally split between both partners. While selling the home is often the simplest answer, this can be a difficult choice.
When Arizona couples decide to end their marriage, their retirement funds are often among the largest assets that they own. Going through a divorce is often financially difficult, but people can take action to help protect their financial future and move forward after the split. While Arizona is a community property state, meaning that assets obtained during the marriage belong equally to both parties, judges do have discretion in some cases.
Over time, people may have different feelings toward their partners. Therefore, Arizona residents who are planning on getting married may benefit from creating a prenuptial agreement. It will dictate what happens in the event that the marriage ends. One of the best reasons to have such an agreement is that it can be negotiated in a rational manner when both parties have a good relationship with each other.
The Pew Research Center reports that older couples are divorcing twice as often as they did in the 1990s, and this means that more Arizona couples who divorce may be dealing with complex financial matters. The increasing popularity of annuities means these are a growing factor in divorce, but the rules associated with them are complicated, and they may lose value when divided. Some couples prefer to trade assets instead of trying to split them.
People in Phoenix considering divorce may be concerned about how their assets will be affected by the property division process that accompanies the end of a marriage. Individual retirement accounts, or IRAs, and other forms of retirement funds are often some of the most significant assets involved in a divorce settlement. For couples at all levels of wealth, these accounts are often large and can be invested in a number of different ways. While individually owned IRAs have long been a standard subject of property division in a divorce, there has been an increasing trend toward the use of inherited IRAs during a divorce settlement.
The assets of business owners or partners in Arizona generally represent marital property when they seek divorce. As a community property state, the law requires equal division of marital property. For this reason, someone entering the divorce process needs to calculate accurately the current value of business holdings. An independent forensic accountant has the training to open a company's books and determine the valuation.
Previous posts here have mentioned how the divorce process can be much easier for couples in Arizona when they are able to reach agreements about certain aspects of the legal process. For instance, some divorces are agreed to mutually - both partners realize that it is best for each of them to move on from the marriage. Couples like this who are going through a divorce in Arizona may be able to work out many different parts of the divorce process, such as one of the biggest issues: property division.