Is there a form to protect individual IRA's and Investments in a divorce?
Full Question:
Answer:
Arizona is an equitable distribution state. I am assuming you purchased our form which is used to obtain a dissolution of marriage for non covenant marriage. In dissolution of marriage proceedings, the property, such as investment assets, owned by the couple is divided between the parties. This is accomplished by listing the agreed property and debt divisions in the Petition and Decree. You may agree to divide the property any way you like, as long as a basic fairness is maintained, and you both agree to all terms of the division. No further form is necessary. However, the court may assign separate property of one spouse to pay joint debts. If you and your spouse cannot agree on all of the terms of the division, the dissolution of marriage transforms into a contested dissolution of marriage proceeding, the court will decide how to divide the property based upon equitable principles and a subjective determination of fairness, after taking all the facts and circumstances into account.
The following is an AZ statute:
25-318. Disposition of property; retroactivity; notice to creditors; assignment of debts; contempt of court
A. In a proceeding for dissolution of the marriage, or for legal separation, or in a proceeding for disposition of property following dissolution of the marriage by a court which previously lacked personal jurisdiction over the absent spouse or previously lacked jurisdiction to dispose of the property, the court shall assign each spouse's sole and separate property to such spouse. It shall also divide the community, joint tenancy and other property held in common equitably, though not necessarily in kind, without regard to marital misconduct. For the purposes of this section only, property acquired by either spouse outside this state shall be deemed to be community property if the property would have been community property if acquired in this state. This section does not prevent the court from considering all actual damages and judgments from conduct that results in criminal conviction of either spouse in which the other spouse or child was the victim, excessive or abnormal expenditures, destruction, concealment or fraudulent disposition of community, joint tenancy and other property held in common.
B. The community, joint tenancy and other property held in common for which no provision is made in the decree shall be from the date of the decree held by the parties as tenants in common, each possessed of an undivided one-half interest.
C. The court may impress a lien on the separate property of either party or the marital property awarded to either party in order to secure the payment of:
1. Any interest or equity the other party has in or to the property.
2. Community debts that the court has ordered to be paid by the parties.
3. An allowance for child support or spousal maintenance, or both.
4. All actual damages and judgments from conduct that results in criminal conviction of either spouse in which the other spouse or child was the victim.
D. The decree or judgment shall specifically describe by legal description any real property affected and shall specifically describe any other property affected.
E. This section applies through both prospective and retrospective operation to property without regard to the date of acquisition.
F. In all actions for the dissolution of marriage or legal separation the court shall require the following statement in the materials provided to the petitioner and to be served on the respondent:
Notice
In your property settlement agreement or decree of dissolution or legal separation, the court may assign responsibility for certain community debts to one spouse or the other. Please be aware that a court order that does this is binding on the spouses only and does not necessarily relieve either of you from your responsibility for these community debts. These debts are matters of contract between both of you and your creditors (such as banks, credit unions, credit card issuers, finance companies, utility companies, medical providers and retailers).
Since your creditors are not parties to this court case, they are not bound by court orders or any agreements you and your spouse reach in this case. On request, the court may impose a lien against the separate property of a spouse to secure payment of debts that the court orders that spouse to pay.
You may want to contact your creditors to discuss your debts as well as the possible effects of your court case on your debts. To assist you in identifying your creditors, you may obtain a copy of your spouse's credit report by making a written request to the court for an order requiring a credit reporting agency to release the report to you. Within thirty days after receipt of a request from a spouse who is party to a dissolution of marriage or legal separation action, which includes the court and case number of the action, creditors are required by law to provide information as to the balance and account status of any debts for which the requesting spouse may be liable to the creditor. You may wish to use the following form, or one that is similar, to contact your creditors:
Creditor notification
Date: ___________________________________
Creditor name and
Address: ________________________________
_________________________________________
_________________________________________
Within thirty days after receipt of this notice, you are requested to provide the balance and account status of any debt identified by account number for which the requesting party may be liable to you.
Name: ___________________________________
Address: ________________________________
_________________________________________
_________________________________________
_________________________________________ (signature)
_________________________________________ (printed name)
G. On the written request of any party to a pending dissolution of marriage or legal separation action, the court, except for good cause shown, shall issue an order requiring any credit reporting agency to release the credit report as to the spouse of the requesting party on payment by the requesting party of any customary fee for providing the credit report.
H. On the request of either party and except for good cause shown, the court shall require the parties to submit a debt distribution plan that states the following:
1. How community creditors will be paid.
2. Whether any agreements have been entered into between the parties as to responsibility for the payment of community debts, including what, if any, collateral will secure the payment of the debt.
3. Whether the parties have entered into agreements with creditors through which a community debt will be the sole responsibility of one party.
