Hearing to Contest a Rule 69 Agreement in Arizona
Rule 69 of the Arizona Rules of Family Law Procedure allow parties in a family law case to reach binding agreements regarding the division of their assets and debts, agreements pertaining to custody of their children, agreements regarding child support, and agreements regarding spousal maintenance among other issues.
Despite the seemingly binding nature of a Rule 69 agreement, the judge assigned to your case has an independent duty to ensure the agreement is fair and equitable. If the judge concludes the agreement is not fair and equitable, the court must reject the agreement and may not enforce the agreement.
So, what happens when someone enters into a binding rule 69 agreement only to later suffer buyer’s remorse because he or she believes the agreement was unfair? Is a judge required to hold a trial to present evidence for the judge to determine whether the Rule 69 agreement is fair and equitable?
Well, the answer to whether you are entitled to a trial to present evidence on the fairness of a Rule 69 agreement or whether a judge can simply make that determination without a trial depends upon whether there is already sufficient information in your court record that enables a judge to determine if your Rule 69 agreement is fair and equitable and should be ordered by the court or is not fair and equitable and should be rejected by the court.
A Hearing is Required if the Court Record is Insufficient for a Judge to Determine if a Rule 69 Agreement is Fair and Equitable
The Arizona Court of Appeals, in the unpublished case of Jones vs. Jones, addressed when a judge is required to hold a hearing and allow the parties to present evidence before a judge will be able to determine if the terms of a Rule 69 agreement are fair and equitable and should be enforced by the court or must be rejected by the judge because the agreement is not fair and equitable.
In the Jones case, Husband and Wife entered into a Rule 69 agreement. Husband subsequently claimed the agreement was not fair and equitable because it involved dividing assets that were his separate premarital property and unfairly divided the remaining community property.
The trial judge, over Husband’s objection, made a finding the agreement was fair and equitable and enforced the terms of their Rule 69 agreement. The trial judge made those findings without conducting a trial or allowing the parties to present evidence to prove what items were sole and separate property, what property was community property, and how much those community property items were worth.
On appeal, Husband claimed the trial judge did not have enough evidence in the record to be able to independently determine whether the Rule 69 agreement he signed was fair and equitable and, therefore, the trial judge should have held a hearing to allow him to present evidence to prove the unfairness of the agreement.
The Court of Appeals started its analysis of the issue by citing Arizona Revised Statute Section 25-317(A) which provides that to promote the amicable settlement of disputes, parties to a dissolution of marriage may enter into a written separation agreement containing provisions for the disposition of any property owned by either of them.
The Court of Appeals concluded Arizona Revised Statute Section 25-317(B) provides that the terms of a Rule 69 settlement agreement are “binding on the court unless it finds, after considering the economic circumstances of the parties and any other relevant evidence produced by the parties, that the agreement is unfair.”
The Court of Appeals also cited to the prior Court of Appeals decision in the case of Wick vs. Wick where it held a court is duty-bound to distribute the parties’ property in a fair manner, even if doing so is contrary to the terms of their Rule 69 agreement.
The Court of Appeals ruled that Rule 69 agreements are presumed to be valid. The person challenging such an agreement has the burden to prove otherwise.
When such an objection is made to a settlement agreement, the trial court is required to determine what property items are community property and whether the person objecting to the settlement agreement had full knowledge of that community property. The court is also required to consider whether the person objecting to the agreement had full knowledge of what items of property constitutes the separate property of a spouse.
If there is sufficient information in the court record, such as in the Hutki vs. Hutki case discussed below, for the court to determine the fairness of the agreement, the court is not required to conduct a trial. In such a case, the judge can simply rule that the agreement is fair and equitable and enforce the agreement or can find the agreement is not fair and equitable and refuse to enforce the agreement.
However, if there is not sufficient information in the court record for the court determine whether a Rule 69 agreement is fair and equitable, the court must provide the parties with a hearing to present evidence for the court to determine whether the agreement is fair and equitable.
The Court of Appeals then indicated it would uphold a trial court’s order dividing the property and debts of the parties absent the trial judge’s abuse of his or her discretion. A judge abuses his or her discretion when the court record upon which he or she relied to enforce a Rule 69 agreement is devoid of competent evidence to support its decision.
In response to Husband’s claim the trial judge did not consider the substantive fairness of the settlement agreement before the judge enforced the agreement, the Arizona Court of Appeals indicated Husband had extensive sole and separate property he owned prior to marriage.
The Court of Appeals also noted the parties’ agreement required Husband to pay Wife a property equalization payment of $500,000.00. The Court of Appeals ruled that provision of the settlement agreement does not provide sufficient evidence for the trial judge to evaluate the fairness of that equalization payment or the agreement itself.
Wife argued the trial court could have looked at the information about their assets included in their Resolution Management Conference statements. The Arizona Court of Appeals rejected Wife’s argument because the information in those documents does not contain values of the assets or the amount Wife was claiming as a community lien against Husband’s sole and separate property.
Ultimately, the Court of Appeals concluded the trial court lacked sufficient evidence about which assets were the separate property of each spouse, which assets were community property, or the value of the community property assets.
The Court of Appeals, therefore, vacated the trial judge’s enforcement of the parties Rule 69 agreement and remanded the case back to the trial judge to conduct an evidentiary hearing after which the judge can determine if the agreement is fair and equitable and should be enforced or not fair and equitable in which case the trial court should reject the agreement.
A Hearing is Not Required if the Court Record is Sufficient for a Judge to Determine if a Rule 69 Agreement is Fair and Equitable
We have written a separate article on the Arizona Court of Appeals case of Hutki vs. Hutki. In that case, Husband and Wife entered into a Rule 69 agreement dividing their assets and debts among other agreements. Wife later objected to the Rule 69 agreement claiming the agreement was not fair and equitable.
Wife requested a trial to present evidence as the value of their property and the extent of their debts. The trial court denied Wife’ s request for a trial on her objections to the fairness of the Rule 69 agreement and issued orders enforcing their agreement as the court’s orders for the division of their assets and debts.
On appeal, the court of appeals concluded there was sufficient information in the record that enabled the trial judge to find the agreement was fair and equitable without conducting a trial.
If you have questions about a hearing to contest rule 69 agreement in an Arizona divorce case, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Our Arizona divorce and family law attorneys have over 100 years of combined experience successfully representing clients in divorce 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 divorce or family law case around today.
More Articles About Divorce in Arizona
- The advantage of Filing Divorce First in Arizona
- Are Prenuptial Agreements Enforceable in Arizona
- Arizona Divorce
- Arizona Divorce Attorney Reviews
- Arizona Divorce Child Custody
- Arizona Divorce Debt
- Arizona Divorce Forms
- Arizona Divorce Laws
- Arizona Divorce Laws Alimony
- Arizona Divorce Laws and Statutes
- Arizona Divorce Laws on Adultery
- Arizona Divorce Papers
- Arizona Divorce Practice
- Arizona Divorce Process
- Arizona Divorce Records Search
- Arizona Marriage Laws
- Asset and Property Search in an Arizona Divorce
- Arizona Divorce When You Can’t Find Your Spouse
- Change to Maiden Name After Divorce in Arizona
- Changing Orders in an Arizona Divorce Decree
- Children and Divorce in Arizona
- College Expenses After Divorce in Arizona
- Complex Divorce Cases in Arizona
- Conciliation Court Services in Arizona
- Consent Required for Marriage of Minors in Arizona
- Considering the Children during a Divorce in Arizona
- Convert to a Covenant Marriage in Arizona
- Coping With Divorce in Arizona
- Court Services to Save a Marriage in Arizona
- Custody of the Family Pet in a Divorce in Arizona
- Dissolution of Marriage in Arizona
- Divorce After Legal Separation in Arizona
- Divorce and Children in Arizona
- Divorce Arizona
- Divorce Case is on the Inactive Calendar in Arizona
- Divorce Court Jurisdiction in Arizona
- Divorce in Arizona Without Children
- Divorce Procedures in Arizona
- Divorce Records in Arizona
- Divorce Statistics in Arizona
- Divorce Support Groups in Arizona
- Domestic Violence and Divorce in Arizona
- Effect of Adultery on an Arizona Divorce
- Effects of Divorce on Children in Arizona
- Enforceable Arizona Prenuptial Agreements
- Failure to Include an Issue in an Arizona Divorce
- Filing for Divorce in Arizona
- Filing for Divorce to Receive Alimony in Arizona
- Guide to Divorce for Men in Arizona
- High Asset Divorce in Arizona
- High Conflict Divorce in Arizona
- High Net Worth Divorce Arizona
- How is a Divorce Finalized in Arizona
- How Long Does a Contested Divorce Take in Arizona
- How Long Does it Take to Get a Divorce in Arizona
- How Long Does it Take to Get Divorced in Arizona
- How Long Does Uncontested Divorce Take in Arizona
- How Long To Be Separated Before Divorce in Arizona
- How long to get Temporary Orders in Arizona
- How Much Does it Cost to Get a Divorce in Arizona
- How to Appeal a Divorce Decree in Arizona
- How To Find Good Divorce Attorney in Arizona
- How to Start a Divorce in Arizona
- Learn About Uncontested Divorce in Arizona
- Legally Separated File Divorce in Arizona
- Marital Settlement Agreement in Arizona
- The merger of the Settlement Agreement in Arizona
- Military Divorce Laws in Arizona
- Misled Into Signing Divorce Settlement in Arizona
- Modifying a Divorce Decree in Arizona
- No Contest Divorce in Arizona
- No-Fault Divorce in Arizona
- Order to Pay Spouses Attorney Fees in Arizona
- Parenting Class During a Divorce in Arizona
- Petition for Dissolution of Marriage in Arizona
- Protect Children in a Divorce in Arizona
- Quick Divorce in Arizona
- Reasons for Divorce in Arizona
- Reasons to File for Divorce in Arizona
- Represent Yourself in Arizona Divorce Case
- Same-Sex Divorce in Arizona
- Sealing Court Records in an Arizona Divorce
- Sell Home During Divorce in Arizona
- Selling Property During a Divorce in Arizona
- Served With Divorce Papers in Arizona
- Serving Divorce Papers by Publication in Arizona
- Should I Keep the House in a Divorce in Arizona
- Social Media Evidence in Divorce in Arizona
- Stop an Arizona Divorce
- Stop an Arizona Divorce if You Change Your Mind
- What Happens at a Resolution Management Conference in Arizona
- What Happens If the Divorce Case Goes to Trial in Arizona
- What Happens Temporary Orders Hearing in Arizona
- What is a Covenant Marriage in Arizona
- What is a Default Divorce in Arizona
- What is a Family Law Master in an Arizona Divorce Case
- What is a Preliminary Injunction in an Arizona Divorce
- What is a Temporary Orders Hearing in Arizona
- What is the Divorce Process in Arizona
- What Reasons Do I Need to Obtain a Divorce in a Covenant Marriage in Arizona
- What to do When Served with Divorce Papers in Arizona
- When Can I File For Divorce in Arizona
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.