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Written by Canterbury Law Group

Talk About Divorce Right After Engagement

It’s THE most exciting time in your life. You’re newly engaged and about to embark on an exciting life journey with the one you love.  You will soon marry!

But guess what? Now, and we mean NOW, is the best time to talk about divorce.

Why is that?

Well, divorce attorneys in Scottsdale see it all the time. Great people with high hopes and optimism for their relationship soon crumble before them with a relationship that ends in resentment and heartbreak. With affections and optimism at its peak during an engagement, talking about divorce is extremely productive.

Generally speaking, people end up filing a divorce because they don’t know their spouse or they don’t know themselves. By simply speaking with your significant other about divorce, you are taking a huge leap in the right direction to avoid this situation.

The only question that remains is, what should you talk about?

Let’s take a look.

Talk About the Why

That’s right. You should have a conversation with your fiancé about why you would get divorced in the first place. This is a very clear path to pinpointing your marital expectations. This includes non-negotiables such as fidelity and honesty in addition things that might change throughout the marriage like friendships and career details. You can take this one step further and discuss what you both feel are good and bad reasons to get divorced.

Discuss Prevention

Experiencing issues in a marriage is inevitable. A perfect marriage, with no problems, simply doesn’t exist. Having said that, it’s important to handle those issues properly and overcome them in the best possible manner. Be candid with your partner about how you would handle problems and what you would do if issues were to present themselves. Would you broach things head on? Would you wait it out? Would you seek counseling? These are all important questions to consider.

Share Obligations If You Were to Get Divorced

While prenuptial agreements may be tough to have at such an early stage of your long-term relationship, they provide a great of insight. They are raw, emotional, and passionate.

It’s important to discuss things like the space you share (your home), financial logistics/needs, professional life changes, family member involvement, and parenting.

While it’s important to discuss individual needs during a divorce, if you devote enough affection throughout your relationship and appreciate everything your fiancé has to offer, it’s unlikely that you’ll ever need to file those divorce papers.

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Three Tips to Enduring Divorce

Divorces are difficult for everyone. While nobody wants to go through the process of divorce, it is, of course, can be necessary.

According to Psychology Today, nearly 40% of marriages ended in divorce in 2017. Think about that. That’s quite many people terminating their marriages.

When marriage trendy headed south, what should you pay attention to reduce overall stress and financial burdens in your life?

Divorce lawyers in Scottsdale recommend these three tips to make the divorce process as smooth as possible. Or you can choose not to file.  Either way, knowledge is power.

UNDERSTAND BOTH PARTIES’ FINANCIAL ASSETS

Before you can even begin negotiating marital assets, each spouse should seek to understand the others’ financial status. Too often, one spouse is in the dark about exactly what assets their significant other has/owns. It’s important to consider ALL financial assets: pensions, retirement accounts, bank accounts, properties, vehicles, etc. Having just a general understanding of these assets can lead to problems during divorce.

Here is the good news: If you file for divorce, your divorce attorney will seek and acquire all the “hidden assets” from your spouse through Court appointed rules and regulations.

AVOID EXPENSIVE LAWYERS

While many people feel the need to hire an “established lawyer” right away, you will be draining your finances more than you really need to. Since the system immediately starts generating work for the attorney (as soon as you submit your filing), you will be charged from the get-go. Things that will be set in motion include, but are not limited to, include financial relief for child support and counsel fees.

Sooner rather than later, you are thousands of dollars in the hole, and that may not even include a court appearance. Initiating the divorce in such an aggressive manner will not only prove to be costly but will also lead to greater tension and potential resentment.

Rather than rushing into the legal process, approach things amicably and have productive conversations. If both parties agree to work together in a civil manner, mediation may be a better option. Not only is this more affordable, but it can alleviate things quicker and more efficiently.

DETERMINE THE RIGHT TIME

Instead of rushing to make divorce official, consider all of the financial matters that come into play when deciding to file for divorce right then and there or at a later time. Timing can also largely impact the “equitable distribution of assets and liabilities.” Your house, amongst other assets, can be a huge factor in determining when you want to file.

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Divorce Settlement in Arizona

Divorce settlement via private mediation is common in some states, where some courts may require couples to settle their problems before contested trial. Arizona is not one of these states. Divorcing couples can directly go to trial without any legal obligation to negotiate via a mediator. But that does not mean divorce settlement is impossible or not worthwhile in Arizona. The state’s family courts are dealing with a massive backlog.   Six or twelve-month backlogs are not uncommon.  Therefore, if you want your divorce case to proceed faster, the settlement might be the best option through private mediation.

There are multiple ways to settle your divorce case with your soon-to-be-ex. The easiest path is to talk to him or her civilly with your divorce attorney in Scottsdale present. You can also hire a third party mediator, with your attorney attending such mediation, to facilitate talks. Divorce mediators are not attorneys, but impartial third-parties who help couples hold discussions. Mediators can help when spouses are not on speaking terms.  You can have your lawyer present, as can your spouse.

Some individuals may refuse to talk to their divorcing spouse and prefer to sort out differences in court. This, however, could be counterproductive to both parties. Here are several reasons why settling a divorce case can be to your advantage:

Save Money

The biggest motivator that drives many divorcing couples to settle via mediation instead of going to trial is the money and expense. Make no mistake, divorce is expensive in Arizona. When an attorney has to represent you at trial, the expenses can pile up because the trial prep is extensive and time-consuming. You will also have to pay documentation fees. Attorney fees and other costs are much lower when you settle.

Save Time

As mentioned above, state divorce courts in Arizona hear so many cases that you should not expect your case to sail through the court without a hitch. Even setting the initial trial date could take months if not a year or more.   If you don’t want the divorce to drag on for years, do consider talking things through and settling through private five-way mediation.

Make Your Priorities Clear

Settling the divorce with your spouse and attorneys is the best way to make your priorities clear. You will have plenty of opportunities to have your say before the final divorce decree is signed. When the case goes before a judge, it is the judge who ultimately gets the final say. The trial won’t go on forever either. The judge is under pressure to conclude the case within a limited amount of time. Therefore, it’s not unlikely that you may not like the judge’s final ruling. It’s possible that the judge may rule in a manner that neither party is satisfied with. It’s usually the case when it comes to decreeing property division and alimony. When you settle, you will have more control over the outcome.  It’s better to choose than to be chosen by a random person in a black robe.

Protect the Children from Unwanted Hostility

Most important, active divorces take the biggest toll on your dependent children. If your divorce involves kids, you do them a disfavor by dragging out a divorce case for years. If you don’t want your children embroiled in a nasty divorce fight, choose to settle with the spouse. Negotiations can also make co-parenting plans more bearable.  Private mediation can get you to the finish line far sooner and with less expense.

If you want the best outcome from your divorce, try to settle your differences and focus on practical issues. Negotiating a settlement civilly is the best case scenario for both parties and for children in most divorces. If you need more information, contact us to discuss options without charge.

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Divorce and Taxes in Arizona

The tax season for 2018 starts on January 29. It can be a particularly stressful time, especially now that the national tax laws have changed. If you are in the middle of a divorce or have recently filed for a divorce, this season’s filings can be quite overwhelming. Here is what you should know about divorce and filing taxes in Arizona so that you don’t make a penalty-incurring mistake:

Divorce Attorney Fees are Not Tax Deductible in General

Clients in divorce cases often want to know if attorney fees are tax deductible. Typically, the answer is no. The IRS does allow a minor exception for divorce attorney fees paid during “collection or production of gross income.” This clause doesn’t cover a majority of fees you would pay a divorce attorney. But you can ask your divorce attorney in Scottsdale whether the fees you pay are tax deductible.

Your Filing Status Determines Tax Liabilities

When you file your IRS form, you are given three options to choose from as your civil status: married, single, or head of household. Tax liabilities for each category slightly differs, so the box you check matters a great deal for your individual tax obligations. If the divorce is not yet final, it can be difficult to determine whether to file as a single person or jointly with your soon-to-be-ex. You can consult with a lawyer to decide what to do. Or you could calculate what you owe under all three categories and determine which is most advantageous to you.

Spousal Support and Child Support are Distinct Categories

When filing your taxes, do not confuse alimony or spousal support with child support. Spousal support, which is sometimes referred to as alimony, is paid by one former spouse to another, for the benefit of the recipient. Child support, on the other hand, is paid to an adult who oversees the well-being of a child, but for the direct benefit of the child.

If you are a custodial parent recipient of child support, you don’t have to list it as taxable income. If you are the parent paying child support, you cannot obtain a tax deduction for the amount paid.

Spousal support works the other way. The individual who receives alimony payment must list it as taxable income. The paying spouse can obtain a tax deduction on the alimony payment. Note that the new GOP tax bill made an important change to this provision that will take effect on December 31, 2018. So it won’t affect this tax season but will start next year. Under the new law, alimony tax deduction is eliminated. The tax obligation is reversed. The spouse that pays the alimony will not be able to report a deduction, while the spouse that receives alimony no longer has to report it as taxable income.

Property Division may be Subject to Tax When Sold

When spouses divide property during a divorce, it is not a taxable act under the IRS Code. However, there’s a hidden clause called “tax basis” that might result in a tax payment. Tax basis is the purchase price of a property that is used to determine capital gains tax. Not all properties, such as a residence, incur capital gains tax following a divorce. However, certain property, such as investments, may incur capital gains tax when sold after a divorce.

For the most part, your divorce decree would determine how taxes should be paid for some property categories, such as IRAs.

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Holidays and Parenting Time in Arizona

The end-of- the-year holiday season is typically the biggest time of the year for many families to get together. If the parents are divorced, the Christmas season could bring forth new disputes. It’s very important to protect children from any sort of drama during the holiday weeks, especially when they expect to spend their school vacation enjoying themselves. In Arizona, the divorce decree usually also includes a separate parenting time plan that lays out who time is shared over the holidays.

Holiday Parenting Time Under Arizona Law

The family courts in Arizona have a statutory requirement for divorcing couples with children to provide a holiday schedule. Under A.R.S. §25-403.02 (C), this plan must include a “practical schedule” for how parenting time is allocated during the holidays. There should be specifications for with whom the child would reside, how the child should be transported, and a reconciliation method in case disputes arise.

Parents should specifically arrange a parenting time plan for the year-end holidays. Unlike other vacation times, the November-December period involves many public holidays, seasonal celebrations, and family gatherings. The child might require transportation more so than during other long holidays like the summer vacation. It’s highly recommended that divorcing parents get family law help in Scottsdale to come up with a reasonable plan.

Organizing a Parenting Time Plan for the Holidays

Very generally speaking, parenting plans during the holidays can be developed in three primary ways. First, some parents agree to have the children for Christmas every other year. For example, mom could have the kids for Christmas and Thanksgiving during even years, and dad during the odd years. Some parents divide holiday time evenly during the day. For example, the kids would spend Christmas mornings with mom and the evenings with dad. Other parents designate certain holidays for themselves. For example, the kids may spend every Thanksgiving with mom and Christmas with dad.

Of course, parenting plans can be adjusted according to different religions and cultures. Adjustments can also be made depending on the vacation time the parent gets. However, it’s very important to have the holiday season planned ahead and in writing. The arrangements are ideally made months in advance unless it’s already specified during the finalization of the divorce. But practical concerns do arise every year, so ex-spouse’s with children should make arrangements early.

Be Specific with the Details

More importantly, divorcing parents must make sure the parenting plan is highly specific. For example, separating parents may decide to give mom the kids for Christmas during even years. But that’s a very basic provision. Is “Christmas” limited to just Christmas day? Will the children require transportation from parent to parent? On which day and at what time will the kids be dropped off and picked up again? These specifics should be handled in the parenting plan.

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Should You Rush to Get a Divorce before 2019?

There’s been some public speculation in Arizona that couples who want to get a divorce should rush to do so before 2019 rolls around. The reason is the GOP tax bill that has now become law. The new law contains an eyebrow-raising provision that will eliminate the tax deduction for alimony and spousal maintenance.

The Truth about the “Divorce Penalty” in the New GOP Tax Bill

The elimination of the tax deduction for alimony will only go into effect on December 31, 2018. That means couples who divorce before this date can still benefit from the tax deduction. In other words, no, you don’t have to rush to get a divorce before 2019. However, you might want to consider getting a divorce before 2019 to still benefit from the deduction. Seeing that most divorces can take a year or longer to complete, if you are a high net worth or high-income spouse with a long-term marriage and you are considering exiting the marriage, 2018 might be the best time to do it to preserve the tax deductibility of any spousal maintenance you are ordered to pay.

Once the new law goes into effect in 2019, taxpayers in Arizona will not be able to deduct any alimony payments from overall taxable income. Alimony recipients, on the other hand, will not need to report the payment as taxable income anymore. Put another way, spousal maintenance payments will simply be cash out from the payor spouse and cash into the recipient spouse with no impact on either party’s tax returns.

How will the Revised Tax Law Affect Your Divorce Settlement?

It’s important to keep in mind that the new law only affects those who get divorced after New Year’s Eve of 2018. If you are currently in the midst of a divorce negotiating alimony, the new tax law does not need to cause any disputes. Critics of the divorce penalty have argued that the new law would put an excessive financial strain on the ex-spouse that pays alimony or child support. However, these concerns should not affect those who plan to finalize their divorces in 2018.

According to a divorce lawyer in Scottsdale, if divorce settlements are renegotiated after the deduction extension period, the new settlements may be allowed under the tax bill to include language that still allows for the alimony deduction.

Divorcing in 2018 and Beyond

As we push into 2018, it is wise to consult with an attorney to carefully phrase the language in divorce settlements currently being negotiated. There could be additional laws in the future that addresses issues with child support if any arises because of the elimination of the spousal maintenance tax deduction.

In any case, it is not wise to rush a divorce settlement because of a single tax clause. Do consult with your attorneys to makes sure the final settlement is exactly what you need. If children are involved in the divorce, their well-being should be prioritized, as it would be by the courts.

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Why January Sees a Surge in Divorce Filings

The holiday season is in full swing right now. Everyone expects a great start for the New Year, especially families. However, come January, we will also see a rise in divorce filings, according to data from the American Academy of Matrimonial Lawyers (“AAML”). During the months of January in the past several years, AAML data shows between a 25 to 30 percent increase in divorce filings nationwide. This trend isn’t confined to the US either. Researchers have observed it in the UK as well.

In other words, one in five couples gets a divorce in January after the holidays. What could be driving this trend and should married couples be worried? How can family law help in Scottsdale assist in a post-holiday divorce? Read below to find out:

Driving Forces Behind Post-Holiday Divorce Filings

It can be hard to pinpoint exactly one cause for why people file for divorce so soon after the holidays. It could be that most people want to start a new year with a clean slate. If the marriage has been experiencing severe problems in the past year, then it makes sense to start the New Year with a divorce and hope for the best in the future.

The holiday season itself could be a driving force behind the divorce. Families get together for important events like Thanksgiving and Christmas. That means staying together, often with extended family, in the house without that many excuses to leave. Instead of bringing people together, the holidays can also exacerbate problems that drive people toward separation. The holiday time can exert pressure to present a happy face and pretend that everyone in the family is doing fine. It can take a toll on the psyche.   Many spouses see January as their first real time to flee the marriage without doing so during the holiday crush.

The holidays can also make financial problems worse, one of the main reasons behind the divorce. People spend enormous amounts of money shopping for the holidays, throwing holiday parties and enjoying vacations. When the final credit card bill arrives, marital fighting ensues, and the marriage is broken beyond repair come January.

Reasons Not to Rush a Post-Holiday Divorce

Anger and tension can be high when the holidays end. But like all things in life, it can be unwise to rush towards a divorce according to marriage experts and even some divorce lawyers. In states like Arizona, divorce can be expensive and protracted because courts are overwhelmed with so many cases. Besides, Arizona is a community property state, where all assets acquired during the marriage are presumably distributed equally, despite the income levels of each spouse. Contesting such distributions in court can prove costly in time, treasure and emotion.

It’s best to consider alternatives before rushing to separate from a spouse. For example, divorce lawyers in Scottsdale can help you and your spouse mediate differences in marriage. The couple can consider the possibility of divorce and see how assets may be divided before going to court. It’s best to negotiate a separation without contesting everything in a full-fledged litigation. A temporary legal separation is also an option for those who don’t want to divorce, who want to continue to be on each other’s health insurance and other issues.

Instead of rushing to file for a January divorce, think about the end game. What will happen to kids, pets, or elderly dependents? What about finances for the rest of the year and health insurance? Consult a lawyer regarding all of this before going to divorce court.  You can confidentially consult that lawyer in December, January or any other month of the year. Don’t rush—instead be smart, prudent and calculating to maximize your property recovery and your emotional health.

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Prenups are in Higher Demand Among Millennials

Millennials are a lot more likely than their parents to require a prenuptial agreement prior to walking down the aisle. This generation also has fewer qualms about getting a prenuptial than their parents’ generation, according to the latest survey data from the American Academy of Matrimonial Lawyers (“AAML”). The AAML found that more than half of attorneys polled recently said that more millennials have requested prenuptial agreements. Only a small 2 percent of lawyers said that they had seen a decrease in millennial prenups.

A Rising Trend

Unlike their baby boom parents, millennials are less likely to view marriage through rose-colored glasses. Millenials are getting married later in life on average compared to their parents. Not only are millennial soon-to-be-married couples older, they have also had time to accumulate significant assets that they will not want to lose in case of a subsequent divorce.

Interestingly enough, it’s the millennial women who are driving the rising trend among would-be spouses demanding prenups. In the past, a prenup involved an often-wealthy groom asking the bride-to-be to sign an agreement. Prenups were more common among families with money, but now individual wealth can be the deciding factor.  This is particularly true in technology and startup companies where one spouse-to-be has accumulated significant stock and stock options prior to marriage.

What Millennials Want to Protect with Prenups

It was the norm for prenups to once protect inherited wealth. Not anymore, at least not significantly with the millennial generation. What millennials want to protect the most with a prenup is intellectual property, according to Bloomberg. Rather than protecting the family farm against a divorce, millennial spouses want to protect software, apps, songs, films, or screenplays. Interestingly, most of these assets are not even in existence when the couple gets married. What millennials really want is to protect future assets, especially creative ideas, from divorce proceedings.

Millennials included in the AAML survey responded that the most common reason for getting a prenup is the “protection of separate property.” The other two factors that mattered the most were spousal support or alimony and the division of property.

After intellectual property, millennial couples also increasingly include real estate holdings in the agreements. The “millennial prenups” are rather new. However, millennials can specifically request a prenup agreement that includes potential assets from a divorce attorney in Scottsdale.

Taking Stigma Away from Prenups

As millennials start requesting more prenups from their partners, the stigma surrounding such agreements could soon largely disappear. It used to be that couples didn’t want to discuss assets before getting hitched. It’s possible that millennials are learning from the mistakes of their parents, who were more likely to divorce than their own parents. Perhaps getting married later in life makes couples cognizant that not all marriages last a lifetime, but sometimes only a decade, or less.  Moreover, for couples who do not have children, the property disposition during a divorce can be even more important.

However, millennials do not need to worry about divorces like their parents did. The divorce rates are actually in decline nationally. It’s definitely a sign of changing times, or rather, being aware of the facts when getting married.

Many experts do agree that prenuptial agreements in general can be healthy for couples getting married. These agreements can protect individuals against acrimonious and expensive divorce proceedings later in life.  It set’s the couple’s mutual expectations early in the marriage, and no illusions are in place about what happens years later in the event of divorce.

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Covenant Marriages and Divorces in Arizona

Arizona offers two types of marriages for residents. There’s the standard marriage that a good majority of residents get into. The state offers another form of marriage called covenant marriages. These covenant marriages are different in their legal nature. Unlike with the regular marriages, spouses also need to meet different requirements to later get a divorce. This article will briefly explain what covenant marriages in Arizona are, and how to get a divorce under the laws governing this type of marriage.

What is a Covenant Marriage in Arizona?

A covenant marriage is defined as a marriage between a man and a woman in Arizona. This category is available as an option for those who wish to get married and is not a replacement option for the standard type of marriage offered in the state. However in covenant marriages, the two parties enter into the marriage only after signing a written legal declaration stating the intention to enter into a covenant marriage and that they have satisfied certain requirements through premarital counseling provided by a member of the clergy or a licensed marriage counselor.

The legal statement is binding on both parties and strict rules govern how the spouses in a covenant marriage can later get a divorce. Unlike with regular marriages, where separating spouses are not required to cite the reasons for wanting a divorce, separating spouses in a covenant marriage do. Those entering covenant marriages should expect to stay highly committed because legal separation or divorce can be difficult to later achieve.

Dissolution of a Covenant Marriage

The specific reasons under which a court may grant a divorce for a covenant marriage are listed in Arizona Revised Statutes Sections 25-901 to 25-906. There are actually only eight scenarios that legally satisfies valid grounds for an Arizona divorce in a covenant marriage:

  • Cheating or infidelity;
  • One spouse abuses drugs, alcohol or another addictive substance;
  • The other spouse has committed a serious crime that could result in a life sentence or the death penalty;
  • One spouse has abandoned the family and has not been home for at least a year;
  • One of the spouses have committed a sex crime, mainly sexual assault, against a related person;
  • The spouses have been living separately for at least two years and do not intend to live together again;
  • The spouses are legally separated (different from divorce) and have been for at least a year;
  • Both spouses strongly want a divorce.

The courts do not grant divorces in covenant marriages unless the parties specifically qualify for relief under any of the above listed statutory mandates.

Getting a Divorce in a Covenant Marriage and Child Custody

Because divorces under covenant marriages are granted under very specific qualifying specifications, separating spouses must get Family Law help in Scottsdale. The proceedings can be complicated if the spousal dispute includes the custody of children and if there are complex debt or property issues involved. Furthermore, prenuptial or postnuptial contract agreements could further complicate things.

If you are in a covenant marriage, it is not impossible to get a divorce. Consult with a qualified lawyer who specializes in covenant marriages

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Can Social Media Affect Your Divorce?

Social media is now increasingly finding itself in dispute lawsuits. Social media posts have led to harassment and defamation cases, and it’s becoming a major factor in divorce cases as well. Surprisingly enough, one in seven divorces is caused by social media posts, according to data from the American Academy of Matrimonial Lawyers. Facebook is a major culprit. It turns out, one in every 20 divorces are somehow related to Facebook. Even more shockingly, about 30 percent of users on Tinder, the dating app, are in fact married. That perhaps explains that one in three modern divorces result from online affairs.

Facebook Vs. The Modern Marriage

Don’t underestimate the power of social media to affect your marriage, and later, your divorce. If a spouse has been chatting up an ex on Facebook or has a Tinder profile, then your divorce lawyer in Scottsdale can legitimately use that evidence in your favor in an Arizona courtroom. It’s not at all uncommon for divorce attorneys to use emails and texts in divorce proceedings as evidence. Now, social media posts are increasingly being used, even more so than emails.

So, if you plan on separating from your spouse, expect social media to play a role in it somehow. If you have been chatting with an ex on Facebook or Whatsapping a former flame, your spouse may be able to use that evidence against you. Of course, simply retweeting what an ex posted on Twitter doesn’t instantly make your divorce case turn in your soon-to-be ex’s favor. How your attorney defends and uses social media evidence does play a role.  While Arizona is a “no fault” jurisdiction, clever lawyers often seek to burnish the reputation of litigants as a divorce winds its way through the court system.

When Can Social Media be Used as Evidence?

There are several ways divorce attorneys can use social media posts and content as evidence in proceedings. Social media serves as prime examples of communication. For example, if you are accusing your spouse of drinking too much or using drugs, you can use social media posts between your spouse and others they have used substances with to demonstrate the drinking or drug using parents’ unfitness to be the primary custodial parents.

Social media posts are also used to show specific time and places of events, such as “checking in” to a place. Attorneys also use social media posts to prove a spouse’s state of mind and as proof of actions.

Keep in mind that the same evidence can be used against you as well. Particularly, if you bash an ex on social media and try to harass the ex with embarrassing photos and such, it could serve as evidence against you in a divorce court, or even in post-decree proceedings.

Social Media Prenups

Couples who have been getting married in recent years have even gone as far as to sign social media prenup agreements to avoid having Facebook posts dragged into divorce proceedings. Remember that if your private social media conversations end up admissible in court, they become a matter of public record.

If you want to fully understand how social media could impact your divorce, for better or worse, you should discuss the specific matters with your divorce attorney. Don’t underestimate or think of social media posts as irrelevant in your divorce in any case.   Finally keep in mind that once either spouse commences a divorce action, you should presume that all of your digital footprints are being monitored and watched by the other spouse and their lawyers.  Put another way, if and when a divorce starts in your life, put the phones and computers down and start focusing on a brighter future with full custody of your children and a new chapter in your life beginning.

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