Table of Contents
Division of Retirement Accounts in an Arizona Divorce
Many people going through a divorce in Arizona ask how are retirement accounts divided in an Arizona Divorce.
Let’s start our discussion with the Arizona Supreme Court case of Van Loan v. Van Loan.
The Arizona Supreme Court in the Van Loan v. Van Loan case had to answer the question of whether an unvested pension constituted community property in Arizona.
The court concluded that retirement assets, including pensions, are treated in the same manner as all other community property in Arizona and are, therefore, divided between spouses in a divorce.
The court will apportion the community property interest in retirement accounts between the spouses and will award each spouse his or her separate property portion of those retirement accounts.
How to Calculate the Community Property Interest in a Retirement Account During a Divorce in Arizona
There are several ways to determine the community and separate property interests in a retirement account.
The approach used depends on the type of retirement account to be divided.
Retirement accounts are either a “defined contribution” plan or a “defined benefit” plan.
A defined contribution retirement plan is a plan where you invest money that grows over time, like an IRA or 401(k).
You are only entitled to the value of the account.
A defined benefit plan is a plan where you may or may not invest money into the plan and you will receive a monthly amount at a certain age, like a pension.
You may or may not be entitled to the value of the account in lieu of or in addition to monthly pension payments; depending upon the plan.
The Arizona Supreme Court in the Johnson v. Johnson case presented an excellent analysis of how retirement accounts are divided in a divorce in Arizona.
Specifically, the Arizona Supreme Court in the Johnson v. Johnson case established the ways the court may determine the community and separate property interests in these types of retirement accounts.
The actual division of the accounts occurs by rolling out an amount into a separate retirement account for the spouse receiving an interest in the retirement account.
Alternatively, you can offset that spouse’s interest in the other spouse’s retirement account by awarding him or her more of other community property.
If you are splitting a retirement account, you may need to prepare a special Order referred to as a Qualified Domestic Relations Order, which is an Order that directs the plan administrator as to how to divide the community property portion of the retirement account.
Division of Military Retirement in Arizona
Military Retirement Pay may also be divided in an Arizona divorce. However, special circumstances exist in certain cases of military benefits, such as Combat-Related Special Compensation payments and other forms of military disability payments that may not be divided in an Arizona divorce.
However, the Arizona Supreme Court in the unpublished Merrill v. Merrill case held that a trial court might order a spouse to compensate his or her spouse if the court previously awarded the division of Military Retirement Pay that is subsequently turned into Combat-Related Special Compensation.
Since Merrill is an unpublished case, you are not permitted in almost all cases to cite the case as authority to the court.
Using Community to Purchase Years of Service Credit
The Arizona Court of Appeals in the published case of Stock vs. Stock had to determine if using community funds to purchase credit for time the husband served in the military before the parties were married transformed those years of service from the husband’s sole and separate property into community property.
The trial court concluded that the use of community funds to purchase retirement credit for time the husband served in the military before the parties were married transformed those years of credit into community property to be divided in in the divorce. The Court of Appeals disagreed.
The Arizona Court of Appeals held that Arizona Revised Statute Section 25-213 provides that property acquired during marriage is community property while property owned or acquired before marriage is separate property.
Property acquires its status as community property or separate property by the marital status of the person acquiring the right to title to the asset, such that property rights acquired by a single person are that person’s separate property and property acquired by a married person is community property.
Citing the prior court of appeals’ case in the matter of Potthoff vs. Potthoff, the court added the time of acquisition of the property means the time a person obtains the “right to title” to the asset and not when the legal title is subsequently obtained.
For example, if a person bought a home the day before he or she got married, but did not close on the sale of that home until the day after he or she was married, that asset would be that spouse’s separate property.
The community does not turn that separate asset into community property simply by spending community property on that separate property asset, including a retirement account or military pension.
As a result, the spouses in the Stock case did not convert the husband’s pre-marriage years of service in the military into community property simply by using community funds to buy back pre-marriage years of military service.
However, the Court of Appeals also found that the community was entitled to a community lien against the separate portion of the husband’s military retirement pension for the amount of community funds spent purchasing the husband’s sole and separate portion of his pension, plus interest.
If you need information about how a retirement account is divided in Arizona, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Our Arizona community property attorneys have over 100 years of combined experience successfully representing clients in divorce cases in Arizona.
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.
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.
Other Articles About Community Property in Arizona
- UNEQUAL DIVISION OF PROPERTY IN A DIVORCE IN ARIZONA
- DIVIDING PROPERTY NOT INCLUDED IN DIVORCE DECREE IN ARIZONA
- EFFECT OF COMMUNITY PROPERTY LAWS ON A PERSONAL GUARANTY IN ARIZONA
- DIVISION OF PENSIONS IN AN ARIZONA DIVORCE
- CAN A SPOUSE BE HELD LIABLE FOR CREDIT CARD DEBT IN ARIZONA
- DIVISION OF DEBT IN AN ARIZONA DIVORCE
- MILITARY RETIREMENT PAY AND DIVORCE IN ARIZONA
- INTEREST ON A LOAN BETWEEN SPOUSES IN AN ARIZONA DIVORCE
- IMPROVEMENTS TO SEPARATE PROPERTY IN AN ARIZONA DIVORCE
- ENFORCING A PROPERTY SETTLEMENT AGREEMENT IN AN ARIZONA DIVORCE
- DETERMINING COMMUNITY VERSUS SOLE AND SEPARATE PROPERTY IN ARIZONA
- FAIR COMPENSATION DEFENSE IN AN ARIZONA DIVORCE
- EFFECT OF A DISCLAIMER DEED OR QUITCLAIM DEED IN A DIVORCE IN ARIZONA
- ENFORCE DIVISION OF PROPERTY AND DEBT IN AN ARIZONA DIVORCE
- HOW STOCK OPTIONS ARE DIVIDED IN AN ARIZONA DIVORCE
- HOW IS COMMUNITY PROPERTY DIVIDED IN ARIZONA
- IS SEPARATE PROPERTY DIVIDED DIFFERENTLY THAN COMMUNITY PROPERTY IN ARIZONA
- DIFFERENCE BETWEEN COMMUNITY AND SEPARATE PROPERTY IN ARIZONA
- WHAT IS CONSIDERED TO BE SEPARATE PROPERTY IN ARIZONA
- IS ALL PROPERTY OWNED BY EITHER SPOUSE COMMUNITY PROPERTY IN ARIZONA
- DO RULES REGARDING PROPERTY APPLY TO DEBTS IN ARIZONA
- WHAT HAPPENS WHEN SEPARATE PROPERTY IS USED TO PURCHASE A HOME DURING MARRIAGE IN ARIZONA
- COMMUNITY LIEN ON SOLE AND SEPARATE PROPERTY IN ARIZONA
- HOW TO DIVIDE PROPERTY IN ARIZONA WHEN A SPOUSE IS HIDING ASSETS
- IS ARIZONA A 50 50 STATE IN A DIVORCE
- UNFAIR SEPARATION AGREEMENT IN ARIZONA
- VALUATION AND DISTRIBUTION OPTIONS FOR A PENSION IN AN ARIZONA DIVORCE
- FILING A LIS PENDENS IN A DIVORCE IN ARIZONA
- COMMUNITY PROPERTY LIEN ON A DEPRECIATING ASSET IN ARIZONA
- REIMBURSEMENT FOR PAYING SEPARATE DEBTS OF A SPOUSE IN ARIZONA
- REFUSAL TO SELL A HOUSE AFTER A DIVORCE IN ARIZONA
- EFFECT OF MILITARY BENEFITS ON A DIVORCE IN ARIZONA
- VALUING GOODWILL OF A LAW FIRM IN AN ARIZONA DIVORCE
- EFFECT OF A DISCLAIMER DEED ON COMMUNITY PROPERTY RIGHTS IN A DIVORCE IN ARIZONA
- EFFECT OF USING SOLE AND SEPARATE FUNDS USED TO BUY A HOUSE IN ARIZONA
- DIVISION OF MILITARY RETIREMENT AND DISABILITY PAYMENTS IN AN ARIZONA DIVORCE
- WHEN SEPARATE PROPERTY IS USED TO BUY COMMUNITY PROPERTY IN ARIZONA
- WHAT HAPPENS WHEN ASSETS ARE NOT DIVIDED IN AN ARIZONA DIVORCE DECREE
- PROPERTY HELD AS JOINT TENANTS WITH RIGHTS OF SURVIVORSHIP IN A DIVORCE IN ARIZONA
- SEGREGATING SEPARATE FROM COMMUNITY PROPERTY IN ARIZONA
- TRANSMUTING SEPARATE INTO COMMUNITY PROPERTY IN ARIZONA
- TRACING SEPARATE PROPERTY IN AN ARIZONA DIVORCE
- REIMBURSEMENT OF SEPARATE PROPERTY IN ARIZONA
- COMMUNITY LIABILITY FOR SEPARATE DEBTS IN ARIZONA
- STATEMENTS ON PROPERTY ARE BINDING IN AN ARIZONA DIVORCE
- DIVIDING RETIREMENT ACCOUNTS IN A DIVORCE IN ARIZONA
- SELLING A HOUSE DURING A DIVORCE IN ARIZONA
- CRSC PAY AND DIVORCE IN ARIZONA
- JUDGMENT FOR SEPARATE PROPERTY STOLEN DURING MARRIAGE IN ARIZONA
- JUDGE IGNORES A BUSINESS APPRAISAL IN AN ARIZONA DIVORCE
- MINORITY DISCOUNT IN A BUSINESS APPRAISAL IN AN ARIZONA DIVORCE
- WHAT HAPPENS TO PERSONAL INJURY AWARDS IN A DIVORCE IN ARIZONA
- REIMBURSEMENT OF SEPARATE PROPERTY IN A DIVORCE IN ARIZONA
- THE VALUATION OF A LAW PRACTICE IN A DIVORCE IN ARIZONA
- COMMUNITY PROPERTY LOTTERY WINNINGS IN ARIZONA
- IMPACT OF FILING A HOMESTEAD ON SEPARATE PROPERTY IN ARIZONA
- SEPARATE PROPERTY INCREASES IN VALUE DURING MARRIAGE IN ARIZONA
- DIVIDING CONTINGENCY FEES IN A DIVORCE IN ARIZONA
- EFFECT OF POSTNUPTIAL AGREEMENT ON CREDITORS IN ARIZONA
- EFFECT OF A PRENUPTIAL AGREEMENT ON CREDITORS IN ARIZONA
- VALUING A BUSINESS IN ARIZONA DIVORCE WITH NO FINANCIAL DOCUMENTS
- UNAUTHORIZED USE OF A POWER OF ATTORNEY IN ARIZONA
- EFFECT OF PLACING COMMUNITY PROPERTY INTO A FAMILY TRUST IN ARIZONA
- WHAT HAPPENS TO AN INCREASE IN RETIREMENT BENEFITS AFTER A DIVORCE
- FAILURE TO DISCLOSE FINANCIAL INFORMATION IN ARIZONA
- AWARD OF MONEY IN AN ARIZONA DIVORCE
- INTEREST ON A JUDGMENT IN AN ARIZONA DIVORCE DECREE
- SANCTIONS FOR COMPELLING LATE DISCOVERY IN ARIZONA
- PREMARITAL AGREEMENTS AND CREDITORS IN ARIZONA
- INTEREST ON A JUDGMENT IN AN ARIZONA DIVORCE DECREE
- FRAUDULENT QUITCLAIM DEED IN AN ARIZONA DIVORCE
- WHAT HAPPENS TO DEBTS NOT INCLUDED IN A DIVORCE DECREE IN ARIZONA
- IS SEPARATE PROPERTY LIABLE FOR COMMUNITY DEBT IN ARIZONA
- EFFECT OF COMMINGLING SEPARATE AND COMMUNITY PROPERTY IN ARIZONA
- EFFORT DOES NOT ENTITLE A SPOUSE TO MORE COMMUNITY PROPERTY IN ARIZONA
- COMMUNITY PROPERTY INTEREST IN A BUSINESS OWNED PRIOR TO MARRIAGE
- WHAT HAPPENS TO LOANS BEFORE MARRIAGE IN ARIZONA
- TITLE AFFECTS COMMUNITY PROPERTY RIGHTS IN ARIZONA
- LIABILITY FOR A SPOUSE’S NEGLIGENCE IN ARIZONA
- CREDITOR COLLECTING A SEPARATE DEBT WITH COMMUNITY PROPERTY IN ARIZONA
- VALUATION OF STOCK HOLDINGS AND DEBT IN AN ARIZONA DIVORCE
- COMMUNITY PROPERTY LIABILITY EXISTS EVEN AFTER PROBATE ENDS
- CAN A CREDITOR TAKE SOLE AND SEPARATE ASSETS IN ARIZONA
- IMPACT ON THE INCREASED VALUE OF A BUSINESS IN AN ARIZONA DIVORCE
- PROFITS FROM SOLE AND SEPARATE BUSINESS IN AN ARIZONA DIVORCE
- EFFECT OF COMBINING COMMUNITY AND SEPARATE PROPERTY IN ARIZONA
- ABANDONMENT OF MARRIAGE AND COMMUNITY PROPERTY RIGHTS IN ARIZONA
- EFFECT OF AN INCREASE IN SEPARATE BUSINESS STOCK IN AN ARIZONA DIVORCE
- VALUING A PENSION PLAN IN A DIVORCE IN ARIZONA
- GIFT OF SEPARATE PROPERTY BY ISSUING A JOINT TENANCY DEED IN ARIZONA
- CREDITOR LIEN ON JOINT TENANCY PROPERTY IN AN ARIZONA DIVORCE
- FAILURE TO PROVIDE EVIDENCE OF THE VALUE OF PROPERTY IN AN ARIZONA DIVORCE
- MILITARY RETIREMENT PAYMENTS IN AN ARIZONA DIVORCE
- JOINT TENANCY PROPERTY IN AN ARIZONA PROBATE
- CHANGING JOINT PROPERTY INTO COMMUNITY PROPERTY IN ARIZONA
- DISPOSITION OF COMMUNITY PROPERTY IN A LAST WILL AND TESTAMENT
- COMMUNITY LIEN IN A SOLE AND SEPARATE BUSINESS IN A DIVORCE IN ARIZONA
- COMMUNITY FUNDS PAID ON A SOLE AND SEPARATE HOUSE IN ARIZONA
- TRANSMUTING SEPARATE PROPERTY INTO COMMUNITY PROPERTY BY COMMINGLING IN ARIZONA
- COMMUNITY LIABILITY FOR DEBT GUARANTEED BY SPOUSE IN ARIZONA
- SEPARATE FUNDS TO BUY JOINT PROPERTY IN ARIZONA
- COMPENSATION FOR WASTE OF COMMUNITY ASSETS IN AN ARIZONA DIVORCE
- DAMAGE CAUSED BY A COMMUNITY PROPERTY VEHICLE IN ARIZONA
- WHAT TO DO WHEN A SPOUSE IS HIDING ASSETS IN A DIVORCE IN ARIZONA
- OPTIONS FOR BUSINESS OWNERS GOING THROUGH A DIVORCE IN ARIZONA
- MURDERER SPOUSE & COMMUNITY PROPERTY IN ARIZONA
- ENFORCING A SURVIVOR BENEFIT ELECTION IN A PENSION IN A DIVORCE IN ARIZONA
- DIVORCE AND PERSONAL INJURY AWARDS IN ARIZONA
- INJURY AWARDS AND DIVORCE SETTLEMENTS IN ARIZONA
- PROTECT YOUR PERSONAL INJURY AWARD IN AN ARIZONA DIVORCE
- CLAIM OF SPOUSE’S PERSONAL INJURY AWARD IN AN ARIZONA DIVORCE
- PROVING WHAT IS SOLE AND SEPARATE PROPERTY IN AN ARIZONA DIVORCE
- VALUING A HOUSE DURING A DIVORCE IN ARIZONA
- DEFERRED RETIREMENT OPTION PLANS IN AN ARIZONA DIVORCE
- 7 REASONS WHY YOU MIGHT HAVE TO SHARE YOUR PERSONAL INJURY SETTLEMENT IN ARIZONA DIVORCE
- PERSONAL INJURY SETTLEMENT IN A DIVORCE IN ARIZONA
- IMPACT OF TAXES IN A DIVORCE SETTLEMENT IN ARIZONA
- DIVORCE AND REFINANCING A MORTGAGE IN ARIZONA
- RETIREMENT ACCOUNTS, QDROS, AND DIVORCE IN ARIZONA
- TYPES OF BUSINESS APPRAISALS IN A DIVORCE IN ARIZONA
- HEARING TO CONTEST RULE 69 AGREEMENT IN ARIZONA
- HOW TO DEAL WITH A FRAUDULENT CONVEYANCE IN ARIZONA DIVORCE
- PROPERTY EQUALIZATION PAYMENTS IN AN ARIZONA DIVORCE
- TITLE SEARCH ON HOME DURING DIVORCE IN ARIZONA
- DIVIDING ACCOUNTS RECEIVABLE IN AN ARIZONA DIVORCE
- CLAIMS OF WASTE IN AN ARIZONA DIVORCE
- BANK ACCOUNTS AND DIVORCE IN ARIZONA
- REIMBURSEMENT FOR PAYING BILLS IN ARIZONA DIVORCE
- DEFERRED MILITARY RETIREMENT PAY AND DIVORCE IN ARIZONA
- SURVIVOR ELECTION AND MILITARY RETIREMENT IN ARIZONA
- DEFENSE TO REIMBURSEMENT FOR PAYING BILLS IN A DIVORCE IN ARIZONA
- CSRS BENEFITS AND DIVORCE IN ARIZONA
- DIVIDING A PROFESSIONAL PRACTICE IN A DIVORCE IN ARIZONA
- IMPACT OF DISABILITY PAY ON COMMUNITY PROPERTY RIGHTS IN ARIZONA
- COMMUNITY PROPERTY AND ANNULMENT OF MARRIAGE IN ARIZONA
- DEFINITIVE GUIDE TO DIVIDING A BUSINESS IN A DIVORCE IN ARIZONA
- DIVIDING BUSINESS PROFITS DURING A DIVORCE IN ARIZONA
- MINORITY DISCOUNT IN A BUSINESS VALUATION IN AN ARIZONA DIVORCE
- ARIZONA COMMUNITY PROPERTY LAWS
About the Author: Chris Hildebrand has over 26 years of Arizona family law experience and received awards from US News and World Report, Phoenix Magazine, Arizona Foothills Magazine and others. Visit https://www.hildebrandlaw.com.
Leave a Reply