To discuss your divorce or marital debt needs, contact our team. This means that the employee spouse who has been awarded the stock options by his or her company cannot transfer a portion of the options to the other spouse as a part of the divorce settlement. Every parent or spouse with a divorce or child custody dispute pending should know a little about the appeal process in Arizona law. The husband moved to amend the judgment and filed a request for a new trial and subsequently filed an appeal to the Arizona C ourt of Appeals. This article addresses how courts divide assets between a couple during their divorce case. Dividing up property during a divorce settlement can be a difficult thing, even if the couple’s assets are straightforward. Other formulas may be used and the individual grants may also be considered on a case-by-case basis. Our Arizona community property and family law attorneys have over 100 years of combined experience successfully representing clients in community property and family law cases. The two approaches are: Community property: In community property states, marital property is divided 50/50. , Suite 206 Tempe, Arizona 85281. This is true, regardless of the spouses’ respective financial contributions. Office: (480) 448-9800. The following is an overview of the community property laws of Arizona as they apply to financial. 3) The recent housing market is an advantage to sellers–you may be able to get a higher price for your home now than you would after the divorce is final. Doing this beforehand gives your attorney a quick and helpful look at the property and assets likely involved in your divorce case. Call us today at (480)305-8300 or reach out to us through our appointment scheduling form to schedule your personalized consultation and turn your Arizona community property case around today. Jeff Bezos is splitting up with his wife—which means they have an estimated $137 billion in assets to divvy up. Under Oklahoma law, "marital property" means all property (including real estate, personal property, and other assets) the spouses jointly acquired during the marriage, even if title to the property is only in one spouse's name. In most states, couples can handle asset division by mutual agreement. )How to file a divorce in Maine. CALCULATING A COMMUNITY LIEN ON AN APPRECIATING ASSET IN AN ARIZONA DIVORCE. In this case, the employee spouse needs to act as a fiduciary for the ex-spouse well after the divorce is finalized. HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE; HOW IS. If you and your spouse divorce, your 401 (k) could be divided up as part of the financial settlement. Separate Property Most commonly, options are divided using coverture and valued using Black-Scholes. Valuation Methods. Different sorts of property can be significantly harder to divide. Earnings of either spouse during a marriage are community property in Arizona. Whether your business is subject to property division depends on what kind of property it is. Usually, judges will assign each spouse a percentage of the total value of all the couple's marital property (sometimes called the marital or community estate), minus their debts. First, stock options are almost always non-transferable. Our network attorneys have an average customer rating of 4. If you have questions about s spouse hiding assets in an Arizona divorce case, you should seriously consider contacting the attorneys at Hildebrand Law, PC. At the end of a successful settlement, our clients pay only a fraction of their original loan balance. Before we discuss the division of Employee Stock Options, a basic understanding of how they function is important. ARS § 25-317. Our Phoenix property division lawyers also represent people in cases requiring enforcement of decrees for. Although Family Court. Additionally, a complex calculation is necessary to determine how stock options should be divided upon divorce, should they be deemed marital property. However, it is essential to note that the division must be equitable rather than strictly equal, allowing judges some discretion in making decisions. Our Arizona divorce attorneys have over 100 years of combined experience successfully representing clients in divorce cases in Arizona. Marital v. In some cases, it is clear that only one of the spouses can continue to operate the business. Anderson, 256 P. Email Us To have one of our experienced attorneys contact you, please fill out our confidential form below. Unlike with a cash benefit, you don’t immediately enjoy full and unhindered rights over the. Judges understand divorce can have a negative impact on the children. 4th 416. Evans married in 1949. As a result, the value of the stocks will not become fixed until a spouse decides to exercise his or her options and cash out or until the RSUs vest. Earnings of either spouse during a marriage are community property in Arizona. Response to Petition – $269. These few techniques are the most basic courses for spouses to divide a business in a divorce. 1095 W. Ct. 272 (1977), the Arizona Supreme Court considered whether a military pension is a property right or an expectation for divorce purposes if the military spouse has not – at the time of the divorce – completed the. By addressing the issue of IRAs as part of a divorce, it is possible to avoid surprise transfers to an ex-spouse after a death. Pensions, IRAs, 401Ks and retirement plans are also considered community property in Arizona which means they must be divided equally in a divorce. This means that any properties and other assets acquired during the marriage are split 50/50 during the divorce. 2010), the Arizona Court of Appeals discussed whether a divorce court can divide the equity in a marital home on the basis of each spouse’s contribution of separate property to its purchase. The court awarded some of the guns to the husband as his sole and separate property but divided other firearms as community property. However, any money earned or assets acquired before marriage by a spouse is the separate property of that spouse. Courts in equitable distribution states will split all assets, earnings, personal property, and debts between the spouses in a division that is fair (in the eyes of the judge) but not necessarily equal. Under Arizona's community property laws, all assets and debts a couple acquires during marriage belong equally to both spouses. In a divorce, your spouse will have a 50% claim in the value of the company or any stock options you hold (assuming that the business was started during marriage and all of the stock was vested). Call the Family Law Team at (480) 467-4348 to. S. Unlike with a cash benefit, you don’t immediately enjoy full and unhindered rights over the property. As a legal document, the property settlement agreement will be used as a contract. Adam Ramirez has been writing and editing about the law and legal issues for more than 20 years. 317, 319, 732 P. However, if the spouse’s efforts during. The situation is treated as though they had the stock options all along. Mrs. In the case of In Re Marriage of Inboden, 225 P. Only when all the steps of the divorce process are complete is the divorce final, though some aspects, like child custody, child support, and alimony, can sometimes be. Valuation of Stock Holdings and Debt in an Arizona Divorce as Explained by the Arizona Community Property Attorneys at Hildebrand Law, PC. 2010) the Arizona Court of Appeals discussed when a divorce court could divide community property equitably instead of equally. Each case is different, the calculations are complex and care must be taken when considering any model or formula. Assessing the difference between the stock's. If you have more questions beyond "how are stock options from employers divided in a divorce," contact our Virginia family lawyers online or call (888) 530-4374 to schedule a consultation. In Stevens v. A QDRO allows a former spouse to receive a predefined amount of their spouse's retirement plan assets. Calculating and dividing stock options in divorce and analyzing the same as income for purposes of spousal maintenance and child support can be a complicated undertaking. HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE; HOW IS COMMUNITY PROPERTY DIVIDED IN ARIZONA;One of the most important aspects of many divorce cases concerns what. HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE; HOW IS COMMUNITY PROPERTY DIVIDED IN ARIZONA;Adam Ramirez has been writing and editing about the law and legal issues for more than 20 years. There are a few different options couples can consider when it comes to dividing the family. After you research well, you should contact a family law attorney Mesa and see what your options are. Another thing that a spouse should keep in mind is that there are many types of marital property. An Illinois divorce court “shall divide the marital property without regard to marital misconduct in just proportions considering all relevant factors” 750 ILCS 5/503 (d) If a stock option is somehow premaritally earned, a gift, or an inheritance, then the stock option is NOT divisible in an Illinois. This means that a property settlement debt will not have priority status in a. Ct. California is what is known as a community property state. Rather than giving the. 122, 494A. Sfeir, where a support-paying husband’s stock options, originally worth about USD$90,000, depreciated drastically after the valuation date. The terms “fair” and “equitable” has been defined to mean substantially equal. 7,300 of the stock options were granted after the complaint for divorce was filed. Whereas, if the accumulated paid time off is not reimbursable, it is the separate property of the spouse who earned it and it should not be divided in a divorce. Bio and Articles. Rio Salado Pkwy. When you begin the process of getting divorced in Arizona, you will come to learn that most of the contention is around two things: child custody and financial matters. The Arizona Court of Appeals in the case of Schickner v. Basic rules for dividing stock options in divorce:. , Suite 206 Tempe, Arizona 85281. Whether earned while in the military or as a civilian employee, any deferred compensation categorized as community property is subject to division in the parties’ divorce. , Suite 206 Tempe, Arizona 85281. HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE; HOW IS COMMUNITY. App. Division of Military Retirement in Arizona. Johnson case presented an excellent analysis of how retirement accounts are divided in a divorce in Arizona. Our Arizona divorce. The parties owned a house, as well as a parcel of land. . Sec. In the Maryland case of Barbara Green v. Exempted from this principle are any property or assets acquired before the marriage, by a will, or those the couple agree is separate property. Therefore, the community could not claim a lien. Equitable distribution is the more common system of property division, used in 41 of the 50 states. A division of individual retirement accounts (IRAs) can be ordered in a divorce decree or a property settlement agreement that's been recognized by the court. Unlike some community property states, Arizona does. The husband admitted in a verified answer that the retirement account was community property. In Arizona, the decision of the court regarding the division of marital assets is based upon state law. The property remains separate but the community has a lien for the amount invested. Our Arizona divorce attorneys have over 100 years of combined experience successfully representing clients in divorce cases in Arizona. The Arizona Court of Appeals in the case of Bell-Kilbourn vs. This does not automatically mean that each spouse will. Option 1: The employee spouse can keep the RSUs and buy out the other spouse’s interest based on the current value. Van Loan 569 P. Discover residency requirements, grounds for dissolution, and what to…. 50. Call our Phoenix, Arizona office at (602) 732-3098. In Jurek v. Kingsberry divorced in 1963. , the first party 50% and the second party 50%). Paul L. App. Most commonly, options are divided using coverture and valued using Black-Scholes. Call For Consultation (480)305-8300. Cons. Receiving unvested stock from a company isn’t like getting a bonus paycheck. He is a Certified Divorce Financial Analyst™, Chartered Retirement Planning Counselor. Going after your spouse’s stock options and RSUs during a divorce can be tricky, mainly because the value will change over time. Separate property is not subject to division in a divorce. 265, 955 P. To reopen a divorce settlement, you must file a motion and other legal papers with the family court. THE MARRIAGE RELATIONSHIP. The fundamental rule is that all property acquired by either spouse during the marriage (with narrow exceptions) is considered “marital property. Vested vs. Like many other states, Arizona will distribute property resulting from the marriage only if that property was acquired during the marriage. impact of improvements to separate property in an arizona divorce; how to enforce division of property and debt in arizona; how to divide property in arizona when a. Howell No CV 15-0030-PR (Filed December 2, 2015), the Arizona Supreme Court discussed what happens when part of a veteran’s retirement pay is awarded to the spouse in a divorce decree before the veteran waives a part of it for disability benefits. The divorce process may also consider debt in the division of property. You can open all your accounts here. Divorcing spouses will most likely benefit from hiring a real estate agent to manage the selling process and offer advice on key. Our advice is not contesting a wife’s entitlement to more than 50%, but trying to settle out of court by. Sometimes, a company gives an employee stock options to attract the employee to come to work for it; other times, a company offers stock options to try to keep an employee or to compensate him or. If you have a question about divorce in Arizona, please call to speak to one of our experienced Arizona divorce attorneys at (480)305-8300. Stock options give the recipient the opportunity to invest in company shares during a set time period for a lower than average price. The court further explained that property division should not be used to reward one spouse or penalize the other. For more information on the divorce. Rio Salado Pkwy. In the case of Howell v. How are assets divided. Learn about rules on property & asset division in Michigan divorces. In California, separate property includes all property that is acquired by either spouse: before the marriage. To view a further explanation of Arizona case law regarding goodwill in Arizona, click here. Also exempted are assets a spouse acquires by inheritance or gift during the. Remember, the divorce will have a. HOW STOCK OPTIONS ARE DIVIDED IN. Though the couple was divorced, Lazar’s name remained without change as beneficiary on the IRA. M. 2d 214, 116 Ariz. If the. The Court of Appeals, citing the case of Koelsch vs. This summary serves as a general overview of community property laws. CIT Bank is a solid option if you’re looking for a high-interest savings account with no monthly fees. changing the way owners hold title to the property. This includes credit card debt, mortgage debt, student loan debt, and any other debts that were incurred during the marriage. By analogy, if an account has 100 shares of ABC stock in it as of date of separation/divorce and the value of those shares is $10 a share, then the alternate payee can expect to receive 50 shares of ABC stock (which at. ARS § 25-318. 1095 W. Here are the steps for filing a. , Suite 206 Tempe, Arizona 85281. Stat. The law specifically stipulates this will include “prevention of acts of harm or cruelty” and “the provision of food. An increase in the value of that separate property during the marriage is also separate property. The first thing to consider whether you should keep your house in a divorce in Arizona is whether you have children. The same is true for your spouse’s 401 (k) if they have one. The division of assets in any divorce is often a complicated process, but when stock options are added to the mix, the work becomes all the more difficult. . In this way, stock options are very different from retirement benefits, such as 40l (k) plans. 103 (1997) provides that assets “earned during the marriage” are considered part of the marital estate. Navarrete & Schwartz, P. Our Arizona divorce attorneys have over 100 years of combined experience successfully representing clients in divorce cases in Arizona. A spouse has. Here, we will discuss the latter, to give you better insight into the division of property and debt process during your divorce. 8880. to 7 p. Meister addressed the analysis a judge should apply when choosing the valuation date of a business in an Arizona divorce. The division of assets in any divorce is often a complicated process, but when stock options are added to the mix, the work becomes all the more difficult. Yes. Here in New York, the portion of stocks earned as compensation during the marriage are considered marital. You could opt for in-kind division after vesting before exercising the options, if allowed by the. We offer consultations that can explain your rights and legal options when it comes to divorce and separation. Our Arizona community property and family law attorneys have over 100 years of combined experience successfully representing clients in community property and family law cases. It sent the case back down to the divorce court to apportion the $79,000 between separate and community property. Hildebrand Law, PC explains how stock options are divided in an Arizona divorce. , Suite 206 Tempe, Arizona 85281. com to schedule an in-office consultation. The IRS allows divorcing spouses to each keep the same cost basis and holding period for an investment they already own. S. Muchesko, 191 Ariz. A judge will divide a divorcing couple's property and debts, unless the couple is able to reach a settlement agreement. Quitclaim deeds are used most often when no money. Generally, it is the wife that files for divorce in Arizona so she will be entitled to half of all community property and earnings during the marriage unless she can prove otherwise. e. In Van Loan v. B. Sometimes employees. After the final divorce trial, the court awarded the house to the husband subject to the husband paying the wife 50% of the equity in the home, if any. L. Separate property, on the other hand, may be protected from division and wholly awarded to the spouse who owns it. With My AZ Lawyers. settling an ambiguity about inherited property. Arizona falls in line with many of the same state laws regarding divesting assets and stock options during. Consider Capital Gains Taxes on the Sale of a House in an Arizona Divorce. Arizona falls in line with many of the same state laws regarding divesting assets and stock options during a divorce. 00. Learn when you might get—or pay—alimony in an Arizona divorce, how long it may last, and how to calculate the amount under the state’s spousal maintenance guidelines. Arizona defines two categories of divorce: uncontested and contested. . There are two main ways to divide RSUs. Ct. Arizona Divorce Rules and Property Division. Decision. Leisure Lane had an appreciation of $145,100. In general, this means that any asset that you and your. Divorce engagements can require CPAs to act in either or both of two roles. This can sometimes mean 55/45 or 60/40 or 40/60—every case is unique. In the complaint, plaintiff must claim and eventually. , Suite 206 Tempe, Arizona 85281. This capital gains exclusion can work against a single house owner who takes the house as part of the settlement, and then sells it later as a. Property Equalization Payment for a Business and Other Property. Keep in mind, however, that the sale of the house will have associated costs. § 46b-40 (c) (2022). Table of Contents. This is also true for tax losses. Code §36-4-101 (2022). North Carolina's Equitable Distribution Law requires every marital asset to be valued before it is divided, and determining the value of stock "options" has caused headaches for many Divorce Attorneys and Judge's alike. Community property Arizona law requires the full. Sep 01, 2023 · 6 min read. The stock need not be publicly traded, but in most of the reported cases, a regular market does exist for the stock at issue. The laws regarding asset division vary by state, and a couple is subject to the laws of the state that has jurisdiction over their divorce. For equitable distribution, the usual date is the date of the divorce filing in terms of which assets to include in the marital pot for equitable distribution purposes. When you meet with us, we will determine whether you have strong grounds for reopening your divorce case and guide you through the process. For instance, if 100 shares of stock are part of the marital property to be divided in half, one party gets 50 shares and the other party gets the remaining 50 shares. Qualified plans such as 401 (k)s require a document called a “qualified domestic relations order” (QDRO) to be divided. The other role requires the CPA to apply his or her tax expertise to separating marital assets and payments. In the Meister case, the court concluded both spouses had an ownership interest in a business. read more. INCREASE IN VALUE OF A SEPARATE PROPERTY. Call us today at (480)305-8300 or reach out to us through. C. At Cohen Family Law, our practice is dedicated to helping families in Arizona find amicable solutions to these challenges. Lifgren addressed that issue. App. Byington, 224 Mich. This effectively means that any debt that is a divorce-related debt will be non-dischargeable if you file a Chapter 7 Bankruptcy. Equity in Home: Ability to access equity may be required if the home is not being sold or one spouse wants to purchase before the home is sold or the divorce is final. The value of the stocks will not become. You can read the law on the division of property and spousal support in the Ohio Revised Code Sections 3105. The judge issued a property division order that did not address the lotto money. Facts of and Case. The Arizona Court of Appeals in a memorandum decision in the case of Lee vs. In Kingsberry’s case, Western Drilling repaid all of the community loans in full. In order to keep the business, Steve will need to come up with $175,000 for Susan. 001. Strange as it. The most common issue concerning stock options in California divorces arises when they were granted during the marriage but vest after the date of separation. R. S. In such cases, the property may be considered community property. Home;. On Wednesday, Jeff Bezos, the founder of Amazon and currently the richest person. For more information regarding the division of stock options in an Arizona d. Determining the value of stock options based on the current market price. Stat. 3d 599 (Ariz. The Arizona Court of Appeals in the published decision of Meister vs. Dividing business profits during a divorce in Arizona can be a very complicated issue. In these states, all of a married couple's property is classified as either community or separate property. 3d 842 (Ariz. Of course, the couple can enter into an agreement before the marriage, explaining how to distribute the marital property upon divorce. Serve the papers. Often, equitable division doesn't result in a 50/50 split. k. Section 25-215, “Liability of community property and separate property for the community and separate debts,” states in pertinent part:. Ct. The parties were married on February 15. Complex Property Lawyers. We’ve successfully helped countless clients prepare a strong case and obtain favorable results. 1. If you have questions about purchasing property with separate funds to be held jointly in an Arizona divorce case, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Jurek , 124 Ariz. What is a divorce? Divorce is a civil lawsuit to end a marriage. In many ways, the best approach is to divide IRAs during a divorce. Asset division is one of the major financial components of a divorce. Our family law firm has earned numerous awards such as US News and World Reports Best Arizona Family Law Firm, US News and World Report Best Divorce Attorneys, “Best of the Valley” by Arizona Foothills readers, and “Best Arizona Divorce Law Firms” by North Scottsdale Magazine. valuation of stock holdings and debt in an arizona divorce; loans before marriage in arizona; creditor lien on joint tenancy property in an arizona divorce; increase in value of a separate property business stock in an arizona divorce; statements regarding property are binding in an arizona divorce; debts not included in a divorce decree in arizona With market traded stock options, the common way to divide them is for the divorcing employee to keep the stock options while giving the spouse other assets with the equivalent value. If a spouse is caught hiding assets, the court may require them to pay the spouse’s share of the assets to them. Questions & Answers A. One of the more common concerns I encounter as a Divorce attorney in Arizona is with new or prospective divorce clients is a real fear that their soon-to-be ex-spouse will dispose of community assets before the court has a chance to divide the property. As of the date of trial, the wife owned 20,069 stock options awarded between April 14, 1987 and November 15, 1991. At Bishop, Del Vecchio & Beeks Law Office, P. In the case of an Incentive Stock Option, the taxpayer does not recognize income upon the granting or exercise of the option. App. The court also ordered the parcel of land to be sold with each party receiving 50% of the sale of the land. 2010),. They believe this results in a low cost and limited-conflict route to getting a. R. A Conclusion of Value can be presented in either a Detailed or Summary Report. One of the most important aspects of many divorce cases concerns what. In a community property state, marital property becomes community property, which is jointly owned by both spouses. and it can also be one of the most contentious issues in a divorce. Mrs. If the stock is held for more than a year and sold at $35 a share, the employee will pay capital gains on the $15 of increase between the FMV on the date of exercise and the FMV on the date of sale. Choosing between term life and another policy type. This sounds like a simple distinction, but sometimes the issue becomes more complicated. Soon after the marriage, he bought the other half for $45,000. The cash value from a life insurance policy represents part of your net worth as a couple. Ct. How the 401 (k) is to be. Each case is different, the calculations are complex and care must be taken when considering any model or formula. Debt is also subject to division in an Arizona divorce. 2d 208 (Ariz. However, state laws vary. The experienced Arizona divorce attorneys at Hildebrand Law, PC have over 100 years of combined experience calculating the division of pension benefits in a divorce in Arizona. HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE; HOW IS. Step 3 - How to respond to a divorce, set a default hearing, submit a consent decree, prepare for trial. Generally speaking, Arizona will treat stock options in much the same way that they do pension plans. You will not have an impact on your taxes from what they do with the stock options. The question sometimes arises as to what a court may do when separate property is used to buy community property in Arizona. Mitchell v. whether a spouse brought property into the marriage. In the state of Arizona, all assets acquired during the marriage, by either spouse, are presumed to be community property. This straightforward method is commonly used for publicly traded companies. In this case, generally, whoever paid for the property or received it as a gift owns it. Once you have ensured that the QDRO meets the requirements of the 401 (k) plan. If you need help dividing your retirement benefits because you are divorcing your spouse, call DeShon Laraye Pullen. By understanding marital assets and how they get divided in a divorce case, you can plan for the future of your small business. Our Arizona community property and family law attorneys have over 100 years of combined experience successfully representing clients in community property and family law cases. That means that, after the divorce decree was entered, each spouse was the owner of 50% of. Bobrow, 241 Ariz. The high-powered divorce law team at The Valley Law Group can help you understand all the options and legal tools available to you. Divorce proceedings in Virginia occur through several steps: separation, filing, property division, child custody and child support, and spousal support or alimony. § 25-318 gives the court in a divorce case jurisdiction over the division of property held by the spouses in joint tenancy; however, in this case, the property was acquired before the adoption of the 1962 amendment and was therefore not affected by this amendment. In our discretion, we decline to award Wife attorney’s fees under A. Tucson Location:Distributing Stock Options During an Arizona Divorce. Consider Capital Gains Taxes on the Sale of a House in an Arizona Divorce. As Arizona is a community property state, each spouse is. Our family law firm has earned numerous awards such as US News and World Reports Best Arizona Family Law Firm, US News and World Report Best Divorce Attorneys, “Best of the Valley” by Arizona Foothills readers, and “Best Arizona Divorce Law Firms” by North Scottsdale Magazine. App. For a complete list of Maricopa County Superior Court visit their website. In some states, property acquired during the marriage is part of the “community" and is often split 50/50 in cases of divorce. Dividing Sole and Separate Property and Community Property. In every Arizona divorce, all marital property must be divided between spouses. For the sake of general discussion, we have broken family law appeals into three broad areas: Divorce appeals; Child custody appeals; and. After earning a law degree from the University of Arizona, he clerked for two years for a U. Divorce and separation: treatment of stock options for purposes of dividing marital property, 46 A. Restricted stock units (RSUs) are. In Arizona, a high net worth is defined as financial assets of over $1 million. Q. (23 Penn. The employee spouse will also have additional FICA taxes on the amount of the difference. The courts will divide your assets under one of two basic schemes: community property or equitable distribution. Learn About the Valuation and Distribution Options For a Pension in an Arizona Divorce from the Experienced Attorneys at Hildebrand Law, PC. Under. Jimenez had to address the issue, among others, of whether an Arizona divorce court has the legal authority to join a third party in a divorce case for the purpose of allowing a spouse to bring a fraudulent conveyance claim in an Arizona. 9900, or email us at info@mavrideslaw. In such event, it is clear what party will receive the business. The trusted lawyers at Goldman Law are ready to help. He paid $10,000 from a business fund, gave a note to the seller for $5,000 and borrowed $30,000 from the bank. 214. Because this procedure is complicated, it is essential to have the assistance of a capable divorce attorney. Schneider & Onofry, P. There are dozens of issues that need to be settled in a divorce, but dividing up finances is understandably a priority. That way, they can take advantage of all the time- and cost-saving benefits of uncontested divorce (discussed below). See moreDistributing Stock Options During an Arizona Divorce. In equitable distribution states, the court tries to divide debts fairly, but that doesn’t always mean equally. TOTAL. Both the Detailed and Summary reports have the. Foster, the husband filed an appeal of the trial court’s division of guns in an Arizona divorce. R. Mesa Location: 1731 West Baseline Rd. In community property states, each spouse is liable for 50% of debt incurred during marriage by either spouse. In Van Loan v. In a common law state, marital property is owned by the spouse that bought it. A Qualified Domestic Relation Order or QDRO is used to divide non-governmental ERISA pensions. With a traditional 401 (k) account, a judge would order these funds, which were accrued during marriage, to be split through what’s called a Qualified Domestic Relations Order.