Preparing Your Finances for Divorce

During the course of a marriage, finances inevitably become intermingled. There are often shared credit cards and bank accounts. If a house is purchased, both individuals usually take out a mortgage together. This can also be the case with car loans and even educational loans which are applied for jointly. When a marriage dissolves, dispute […]

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Increase in Women Paying Child and Spousal Support

Mothers are the primary or sole breadwinner in 40% of US homes with children, says a 2013 study.  One in four households is headed by a single mother.  Gender stereotypes are breaking down in many areas of American life.  Women are coming farther in the workforce these days than ever before and that is having […]

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Postnuptial Agreements: When Should They Be Used and Why?

Prenuptial agreements, or “prenups”, are familiar to just about everyone. Unfortunately, so are the circumstances that often prompt their creation, such as a wealthy person planning to marry a less wealthy person, an individual who owns part of a family business planning to marry, or an individual with children wishes for them to inherit along […]

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Are non-compete agreements enforceable in Arizona?

Contracts that restrict free will and economic activity are generally disfavored by the courts because they smack of slavery. Non-compete agreements (NCAs) are somewhat of an exception to that general rule. NCAs are essentially employment contracts that limit an employee’s ability to work at a similar company or in a designated geographic area for a […]

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Marital Interest in Husband’s Company Is Subject to Wife’s Claim Even If Divorce Decree was Not Entered Before Bankruptcy Filed.

In this case Husband filed for Chapter 7 bankruptcy, while the parties were in divorce proceedings. No final judgment existed nor was there a division of marital assets. Based on an estimate of her expected share of marital assets, Wife filed a timely proof of claim for one-half million dollars against Husband’s bankruptcy estate, apparently premised on her stake in a partnership that was legally titled in Husband’s name and, therefore, passed to his bankruptcy estate.  It would likely be distributed as shared marital property in a divorce decree.

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Former Married Couple Litigates Money Loaned to Their Business By Relative After Their Divorce Finalized

The Court of Appeals this week in Stewart v. Sterling dealt with the issue of a married couple who formed a business, borrowed money from the wife’s relative for start-up costs, and were later divorced with the husband being awarded the company and without those monies being repaid at the time the divorce was finalized.

Ultimately, the relative sued the ex-husband claiming breach of contract, breach of covenant of good faith and fair dealing and unjust enrichment.  The ex-husband defended the lawsuit claiming that there was never any agreement to repay the money.  At trial, judgment for the full amount borrowed, with interest at the statutory rate and attorney’s fees and costs was entered in favor of the relative.

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