The tax laws and different rules and regulations are vast when it comes to the division of assets during a separation or divorce. Although, a simple division of property seems to be easiest, very often tax inefficiency comes into play when couples try to take the easy, 50-50 approach.

Take the time to educate yourself and be sure to hire the appropriate professionals that will guide you not only from the legal standpoint, but also with respect to the financial and tax planning side when it comes to your upcoming separation agreement.

In this video Deanna visits with Tracy Kendel from Fairway Divorce Solutions to discuss some of the most important factors when considering the separation of assets and the planning of a separation agreement.

𝑻𝒉𝒂𝒏𝒌 𝒚𝒐𝒖 𝒇𝒐𝒓 𝒘𝒂𝒕𝒄𝒉𝒊𝒏𝒈 𝒕𝒉𝒊𝒔 𝒗𝒊𝒅𝒆𝒐. 𝑩𝒆 𝒔𝒖𝒓𝒆 𝒕𝒐 𝒔𝒖𝒃𝒔𝒄𝒓𝒊𝒃𝒆 𝒕𝒐 𝒌𝒆𝒆𝒑 𝒖𝒑 𝒘𝒊𝒕𝒉 𝒐𝒖𝒓 𝒅𝒂𝒊𝒍𝒚 𝒗𝒊𝒅𝒆𝒐𝒔 𝒃𝒆𝒍𝒐𝒘:

► 𝐒𝐔𝐁𝐒𝐂𝐑𝐈𝐁𝐄 𝐇𝐄𝐑𝐄: 𝗵𝘁𝘁𝗽𝘀 https://www.youtube.com/channel/UCIstqTVJYHwiolPcyrJckQg?sub_confirmation=1

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Divorce Division of Assets Illustrated

In a previous post, I addressed the process of identifying, categorizing and valuing assets prior to the assets’ being divided in an Arizona divorce case. This post will provide an example of how assets and debts could be divided in a hypothetical case.

Under A.R.S. §25-318, a judge in an Arizona divorce case is to divide assets equitably, “though not necessarily in kind . . . .” This phrase–“not necessarily in kind”–simply means that, while the overall division of assets and debts must be fair, or substantially equal, an Arizona judge is not required to equally divide each individual asset equally. Similarly, the judge is not required to liquidate all assets and divide the proceeds equally.

In the example I will use, the husband and wife have community property consisting of a house with ,000 equity, a truck with ,000 equity, a car with ,000 equity, a boat worth ,000, a 401(k) worth 0,000, and credit cards totaling ,000. The table below illustrates one possible division of these assets and debts so that, at the “bottom line”, each party receives ,000 net.

HUSBAND WIFE

Truck/Debt ,000 House/Mortgage ,000

Boat 20,000 Car/Debt 20,000

401(k) 65,000 401(k) 35,000

Credit Cards (5000) Credit Cards (10,000)

Total ,000 Total ,000

Note in this example that none of the assets needs to be liquidated. As long as the “bottom line” is equitable, or substantially equal, the division of the marital assets is valid under the law.

The example assumes, of course, that there is no premarital agreement dictating a division of assets other than that prescribed by Arizona community property law. Furthermore, although our example ignores tax consequences for simplicity’s sake, in the real world, the 401(k) dollars would need to be tax-effected before the division is calculated in order to achieve a truly “equitable” division of the assets.

Copyright © 2017 by Scoresby Family Law – J. Kyle Scoresby, P.C. All rights reserved.

Contact Dolan Divorce Lawyers at (203) 397-6171 or http://www.dolanfamilylaw.com

Step 1: Draft the divorce paperwork.

Step 2: Have your spouse served.

Step 3: File the divorce paperwork at the courthouse.

Step 4: Exchange financial information.

Step 5: Pendente Lite Motions

Step 6: Family Relations Pretrial

Step 7: Special Masters Pretrial

Step 8: Judicial Pretrial

Step 9: Trial
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