The Process of Dividing Assets During a Divorce in Arizona
September 22, 2019

Different states have different laws dictating how assets and liabilities are allocated during the dissolution of a marriage. The division of assets process is never as simple as dividing a savings account down the middle. You and your spouse have built a life together, and that may include purchasing vehicles, a home, jewelry, electronics and all types of other expensive possessions.

Those things can be relatively easy to divide in comparison to business or retirement savings accounts where early withdrawals

could result in penalties.

Important Concepts Pertaining to the Division of Assets During Divorce

Arizona is a community property state, which means anything you earned or bought during your marriage is considered to be owned by both spouses equally. Once you file for divorce this community property concept ends, so anything you earn or buy after the divorce petition has been filed is considered separate. Don’t go on a spending spree though, as the courts can see through that ploy and adjust division allocations accordingly.

This is a different approach than the one taken by states that have adopted equitable distribution laws, where a judge may decide on a different allocation of assets, such as a 60/40 split. In equitable distribution states, things such as earning potential, health and age, marriage duration and prenuptial agreements may play a role in how assets and debts ultimately get divided.

The other important concept to consider is separate property versus marital property. Separate property is anything earned or purchased prior to or after the marriage. Marital property is anything earned or purchased during the marriage and prior to filing for divorce.

In Arizona, all marital property and assets will be split down the middle from a valuation perspective. That often means rigorous negotiations must occur between spouses and their respective attorneys. For example, it may be difficult to separate retirement savings in a 401(k), but the value of the 401(k) may be similar to the equity you and your spouse have in the home you both jointly own. One potential solution in that scenario would be one spouse maintains ownership of the home and the other spouse becomes sole owner of the 401(k). This will prevent potential penalties from being incurred due to early withdrawal of money from the retirement savings account while also making it unnecessary to sell the home in order to liquidate and divide the equity. If the two aren’t entirely equal in value, one spouse may just be able to write a check for the difference.

A lot of negotiation may be required, even in a community property state such as Arizona, and not all assets have to be liquidated with the proceeds of the sales being split down the middle.

The negative of the community property standard is the division of debts, which can cause a lot of headaches in Arizona. Disputes regarding finances and money are some of the most common causes of divorce, and it’s not entirely uncommon to hear stories of one spouse accruing significant credit card or other types of debt behind their spouse’s back.

If your husband or wife racks up $20,000 in debt without your knowledge, maybe after spending the money on an extramarital affair, gambling or something else that ultimately contributed to the dissolution of your marriage, are you liable for half of that? In Arizona the answer would likely be yes, you would be on the hook for $10,000 of that debt.

There may be very narrow circumstances in which an Arizona judge may make an exception. If one spouse committed fraud, and it can be proven they did so without the other spouse having any knowledge whatsoever, a judge may be able to modify the agreement to make the offending spouse mostly or entirely liable for the debt, but these situations are rare.


Do You Have Questions About the Division of Assets and Debt During an Arizona Divorce?

Experienced divorce and family law attorney Steven R. Garcia has dedicated his career to serving Arizona families. A significant portion of his practice is dedicated to family law, making him an excellent ally to have during divorce proceedings. He has extensive experience with all types of divorce, including high-asset divorce, divorce involving complex business holdings and difficult divorce cases where one spouse is trying to hide assets or leave their spouse with a load of debt liability. He can help you understand Arizona divorce law as it pertains to your case and provide invaluable assistance throughout the entire process. Schedule a consultation with Steven Garcia and his team by calling (602) 277-2277.

Who Is at Fault in My Phoenix Area Auto Accident?

March 23, 2022
Being in a car accident is a notoriously stressful experience – for good reason. Even if you aren’t injured, you still have to worry about dealing with law enforcement, deciding whether or not to file an insurance claim, actually filing the claim, finding a reputable auto body shop to do the repairs and of course being without a vehicle while it’s being repaired or you’re shopping for a new one if it was totaled. Of course, one of the first things you’ll have to deal with is determining fault, which isn’t always the easiest thing to do. There are scenarios in which clearly delineating fault is difficult for legitimate reasons of physics and road variables, and there are just as many times where a driver, for a variety of possible reasons, doesn’t want to admit negligence or aggressive driving on their part. That being said, it’s still vitally important for your insurance claim and your driving record that fault is accurately determined. So how exactly is fault determined after an auto accident? No Doubt Liability There are certain accident scenarios in which one party is virtually always liable. Insurance companies are notorious for arguing fault, but in these scenarios, even the insurance companies generally acquiesce without a fight. These scenarios include: Rear-End Fender Benders – If someone hits you from behind at a stop light in a right turn lane, for example, it is generally considered a case of no-doubt liability. The driver behind you, as dictated by common rules of the road and law, is responsible for ensuring they have enough time to safely stop without hitting the vehicle in front of them. Even if someone behind the car hit them first and knocked them into you, they are still responsible for damage to your car and any injuries you or your passengers incurred, although they likely have a claim against whoever hit them to set off the whole chain reaction. Left Turn Accidents – If a car making a left hits another vehicle traveling in the opposite direction it is almost always assumed that the driver making the left turn is responsible. The only exception to this rule are situations in which the vehicle traveling in the opposite direction was excessively speeding or running a red light when the accident occurred. Drunk Driving Accidents – In virtually every accident where one of the vehicle operators was intoxicated, the law and insurance companies tend to automatically concede that the intoxicated person is at fault for the accident. Contributory Negligence Contributory negligence occurs when the injured party played some role in their own injury, meaning the negligent party isn’t fully liable for the injury. For example, if you were making a left turn and hit someone traveling the opposite direction, and that person was traveling 30 miles over the speed limit, you can likely use contributory negligence as a defense. As a driver, you may have seen the vehicle coming and, judging the distance, assumed you had enough time to safely make the turn, without realizing the rate of speed at which the oncoming vehicle was traveling was too great to make it through the intersection in time. In that scenario, the court may find that you are 70% responsible and the driver who was hit was 30% responsible. If the maximum compensation were $10,000 the court would rule that you owe the other driver $7,000 instead of the full $10,000. Improving Your Chances for Establishing Fault  Whether for bringing a personal injury case or just dealing with the insurance company, evidence from the accident scene is always going to be the most important factor when determining fault. Police reports and visual evidence will always carry the most weight in this regard. Take photos of the accident scene and the damage to your car as well as the other driver’s vehicle. Much can be determined by where the damage on the vehicles is located and the angle at which the accident occurs. Witnesses can also be hugely important when the courts are trying to determine fault and if there is potential contributory negligence. If possible, stop and ask any potential witnesses for their version of events at the accident scene. Make sure to ask them if they’d be willing to testify or write a statement explaining the accident from their perspective. Also, never apologize for the accident, regardless of whether or not you think you’re at fault. Don’t say anything to the other driver or law enforcement that expresses remorse or could be construed as you admitting fault. If You or a Loved One Have Been Injured in a Phoenix Area Auto Accident, Call Attorney Steven R. Garcia Attorney Steven R. Garcia has been practicing law in Arizona for more than 10 years, and has extensive experience representing people in the Phoenix area who have been injured during auto accidents. Mr. Garcia puts an emphasis on being thorough, collecting evidence and developing an accurate timeline of events to clearly show the negligent party’s culpability in your injury. If you’d like to learn if you have a case, please schedule a FREE initial consultation with Phoenix auto accident injury attorney Steven R. Garcia by calling (602) 277-2277 .

Famously Dangerous Cars

March 7, 2022
Most people would agree that older cars had more character than what the general public drives around today. Despite their classic appearance and style, they also had a variety of issues that made them particularly unsafe. Even some of the most popular cars of the past decades had glaring safety flaws. DeLorean DMC-12 Made famous by its appearance in the 1985 film Back to the Future, the DeLorean and its gull-wing doors had a distinct appearance. Despite its current cult following, initial sales were much lower than expected. The company even went bankrupt after its president, John DeLorean, was arrested on drug trafficking charges. Even if the DeLorean Motor Company had stayed in business the DMC-12 likely would not have won any safety awards. While the gull-wing doors and sleek windows made the car look futuristic, they also posed potential safety risks. In the case of a rollover, there was a very high chance the doors would not open. The windows were also too small to crawl out of, making it impossible to escape a flipped vehicle without emergency assistance. Porsche 911 The Porsche 911 was first developed in the 1960s as a more powerful and comfortable replacement for the company’s first model. More than 50 years of production have made the 911 one of today’s most beloved sports cars. However, the early years were spent refining and fixing old ideas. The 911’s engine was placed in the back of the vehicle, behind the rear axle. This setup resulted in dangerous over-steering; one wrong pull of the wheel could result in the vehicle swerving into other lanes. Chevrolet Corvair The ‘60s Chevrolet Corvair also made use of a rear-mounted engine. Combined with a rear-swing arm suspension, the Corvair’s setup was unfamiliar to most drivers. These factors resulted in a number of instances where the vehicle drastically fish tailed. An investigation by Ralph Nader found that Chevy had even opted to omit an anti-roll bar in order to save on manufacturing expenses. A series of lawsuits put the vehicle’s dangerous nature directly in the public eye, destroying sales. The Corvair was discontinued in its 1969 model year. Ferrari 458 Italia American cars weren’t the only models beset by safety hazards. Ferrari’s initial release of the 458 Italia became infamous for one particular design flaw: they had a habit of bursting into flames. The adhesive material used to hold the car’s inner fenders in place turned out to be highly flammable. Placed close to the exhaust, it was prone to catching fire. Ferrari was forced to recall 1,248 of the vehicles. The fenders were riveted on, in place of the adhesive, but the damage to the sports car’s reputation had already been done. Personal Injury Attorneys in Phoenix If you or a loved one have been injured as the result of conditions created by a negligent individual, company or government entity, experienced Phoenix attorney Steven R. Garcia can help. That includes design or manufacturing flaws in vehicles that lead to accidents or injuries. With professional support you can pursue the compensation you deserve. Contact us today .