Hildebrand Law, P.C. mobile logo

Categories

Effect of Sharing Living Expenses on Alimony in AZ | Hildebrand Law

Mon 10th Oct, 2016 Arizona Alimony Laws

Cohabitation as a Basis to Modify or Terminate Alimony in Arizona

The Arizona Court of Appeals issued a decision regarding living together and spousal maintenance in Van Dyke v. Steinle regarding whether a former spouse’s cohabitation with another person provides a basis to modify or terminate an Arizona spousal maintenance award. The facts of the case were very straightforward. The wife obtained a divorce from her husband. The wife subsequently met a love interest with whom she was cohabiting.

The husband filed a petition to modify the spousal maintenance he was paying Wife; primarily based upon his former Wife’s cohabitation with her new love interest. The wife actually had plans to marry her love interest, but admittedly canceled the wedding when she discovered her marriage would terminate her Arizona spousal maintenance award as a matter of law.

The Arizona trial court found Wife’s cohabitation was a basis to terminate her spousal maintenance award. The Arizona Court of Appeals found that the record did not support terminating Wife’s spousal maintenance, but did remand the case back to the trial court to determine whether the evidence supported decreasing the amount of spousal maintenance Wife should receive from her former husband.

U.S. News and World Report Votes Hildebrand Law, PC Best Law Firms for 2020 2021 2022 2023

Court Denounces Legal Theory of Marriage by Estoppel

The former husband argued his former Wife’s spousal maintenance should be terminated under the legal theory of a “marriage by estoppel”; arguing he justifiably relied upon his former Wife’s intention to remarry to his financial detriment.

The Arizona trial court terminated Wife’s spousal maintenance for several reasons. Specifically, the trial court determined that the court found that the Wife lived with her love interest in the home that had been awarded to her in the parties’ divorce and found that their relationship was sufficiently similar to a marriage.

The trial court found that the original divorce decree anticipated the home being sold and found the Wife had not resold the home. The trial court also found that if the home had been sold, the Wife would have received a significantly greater amount of equity from the home that existed at the time the divorce decree was entered.

The trial court also found that Wife’s cohabitation with her love interest, as well as his contribution to her living expenses, created a new “family” that justified terminating her spousal maintenance.

Living Together As A Basis to Modify or Termination Alimony in Arizona

Effect of Sharing Living Expenses on Alimony in Arizona.

The Arizona court of appeals ruled that a modification of spousal maintenance may be granted whenever it is shown a substantial and continuing change in circumstances has occurred since the entry of the initial award of spousal maintenance.

The wife argued that her cohabitation with her love interest did not constitute a substantial and continuing change in financial circumstances justifying a modification of her spousal maintenance. Her former Husband argued her cohabitation and her love interest contribution to her living expenses did not justify either termination or reduction in her spousal maintenance.

The Arizona Court of Appeals recognized Arizona does not have a statute dealing with the repercussions of cohabitation on spousal maintenance, despite other states with statutes specifically addressing the issue.

On the contrary, the Arizona Supreme Court previously ruled in Smith v. Mangum that cohabitation did not create a “de facto marriage”, but concluded such a relationship could create a change in circumstances justifying a modification of spousal maintenance if the situation decreased a former spouse’s living expenses. The Smith court concluded it was the Husband’s burden of proving a decrease in a former wife’s living expenses as a direct result of her cohabitation.

The Arizona Court of Appeals concluded that the record did not establish Husband met his burden of proving Wife’s cohabitation supported termination of her spousal maintenance, but did conclude the trial court could consider whether Wife’s cohabitation provided a basis for the trial court to decrease her spousal maintenance.

Living Together and Spousal Maintenance in Arizona.

The court specifically denounced the existence of a “marriage by estoppel” legal theory in Arizona. The Arizona Court of Appeals pointed to the Arizona Supreme Court’ s ruling in Schroeder v. Schroeder, which held the purpose of spousal maintenance is to help both former spouses achieve financial independence by providing support from one spouse to the other spouse in such amount and as for as such time as reasonably needed to enable the other spouse to obtain the education, training, and experience to support themselves.

The Arizona Court of Appeals addressed Husband’s argument that the court should consider what Wife’s new cohabitant “should” be contributing to Wife’s household expenses, as opposed to how much Wife’s new love interest was actually contributing to the household expenses (because he was contributing very little to those household expenses).

The Arizona Court of Appeals expressly rejected this argument and held that the Husband had the burden of proving the extent to which the Wife’s living expenses were being reduced, not what the Husband believes her new love interest “should” be contributing to the household expenses.

The appellate court, however, did point out the holding in the Schroeder case providing that a former spouse receiving spousal maintenance cannot avoid a decrease or termination of spousal maintenance by accepting purported “gifts” from a person with whom he or she resides in lieu of receiving contributions towards household expenses.

Cohabitation and Alimony in Arizona.

In the end, the appellate court reversed the trial court’s ruling terminating Wife’s spousal maintenance but found the trial court did not consider Husbands’ alternative request to modify Wife’s spousal maintenance. The Arizona Court of Appeals, therefore, remanded the case back to the Arizona trial court to address whether Wife’s spousal maintenance should be reduced.

Interestingly, it appears the Arizona Court of Appeals was sympathetic to Husbands’ position by declaring it realized its decision may result in inequities in some situations when a spouse receiving spousal maintenance obtains an unfair advantage by living with someone and putting off marriage until the term of spousal maintenance is reached.

The appellate court, however, indicated that any such change in the law affecting this situation must be passed by the Arizona legislature, which could be argued as a call to action for the Arizona legislature to remedy this situation. The Arizona Court of Appeals went so far as to point out that the legislatures of California, Illinois, and New York have passed laws pertaining to the effect of cohabitation on a spousal maintenance award.

If you have questions about effect of sharing living expenses on alimony in an Arizona divorce case, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Our Arizona spousal maintenance and family law attorneys have decades of combined experience successfully representing clients in spousal maintenance and family law cases.

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 spousal maintenance or family law case around today.

Hildebrand Law, PC Voted Best Divorce Law Firm in Arizona in Arizona Foothills Magazine

Frequently Asked Questions About Sharing Living Expenses and Alimony in Arizona

Does sharing living expenses affect alimony in Arizona?

Yes. Sharing living expenses with another person can affect an Arizona spousal maintenance case because the court considers the financial resources and reasonable needs of both spouses. If a spouse seeking alimony shares housing or other expenses with someone else, those arrangements may affect the spouse’s actual financial needs and available resources.

Does living with a new partner affect alimony in Arizona?

It can. Living with a new partner may reduce the expenses of the spouse receiving or requesting spousal maintenance, particularly when the couple shares rent, mortgage payments, utilities, groceries, or other household costs. The impact depends on the specific financial circumstances and evidence presented to the court.

Can a new boyfriend or girlfriend affect alimony in Arizona?

Potentially. Arizona courts look at relevant financial resources and needs when determining spousal maintenance. If a boyfriend or girlfriend contributes substantially to household expenses, that financial arrangement may be relevant when evaluating the recipient spouse’s need for support.

Does cohabitation automatically terminate alimony in Arizona?

No. Cohabitation does not automatically terminate spousal maintenance simply because a person receiving alimony begins living with someone else.

Does sharing rent affect alimony in Arizona?

It can. If a spouse shares rent with another person, the court may consider whether that arrangement reduces the spouse’s housing expenses and overall financial needs. The court generally evaluates the parties’ financial circumstances as a whole rather than relying on the fact of shared rent alone.

Can my ex-spouse’s new partner’s income affect alimony?

A new partner’s income does not become the income of your ex-spouse. However, if the new partner contributes to shared household expenses, that arrangement may reduce your ex-spouse’s personal financial obligations and may therefore be relevant to the court’s evaluation of spousal maintenance.

Does living with family affect alimony in Arizona?

It can. If a spouse lives with parents, adult children, relatives, or another household member who contributes toward expenses, the arrangement may affect the spouse’s claimed financial needs. The court can consider the actual financial circumstances rather than simply whether the spouse lives alone.

Can alimony be changed if living expenses change?

Depending on the terms of the maintenance order and the circumstances involved, spousal maintenance may be subject to modification. Arizona law gives courts continuing jurisdiction over maintenance in many circumstances, although parties can agree to make maintenance terms non-modifiable.

What evidence can show that a spouse is sharing living expenses?

Relevant evidence may include a lease or mortgage documents, utility bills, bank statements, payment records, household expense records, and other documentation showing who pays particular expenses. The relevance of specific evidence depends on the circumstances of the case.

What should I do if my ex-spouse is hiding shared household income or expenses?

If you believe relevant financial information has not been disclosed, discuss the issue with your Arizona family law attorney. Financial records, bank statements, expense documentation, and other evidence may help determine the actual financial circumstances relevant to spousal maintenance.