Jump to Navigation

Phoenix Divorce Law Blog

What to do with a 529 plan upon divorce?

Divorce is seldom an easy process. Many Arizona residents with children going through a divorce know how stressful it can be. Between child support and child custody, the kids may often bear the unexpected burden of divorce. Among the many issues related to asset division in a high-asset divorce, parents of children may also have to cope with how to manage any money currently set aside to help pay for a child's future college expenses.

Most parents aspire to see their child attend college but realize the financial difficulties. That is why many parents put money away in a 529 plan, which works as a college saving investment plan with tax advantages. But with most assets in divorce, they'll need to be divided. Parents with a 529 will often contemplate what to do with the account upon divorce. In normal circumstances, an individual can withdraw from the account at anytime but will face a tax penalty if the money is not used towards education.

Lakers star Steve Nash may have to pay child support

Arizona residents who are also basketball fans may be interested to learn about a battle that is heating up - this time not on the court, but in the courtroom. Lakers starter Steve Nash was embroiled in a nasty divorce and is now involved in an equally distressing fight over child support. His ex-wife Alejandra Nash contends that he should pay child support for their eight-year-old twins and two-year-old son. The courts, thus far, have held a different opinion.

This case is vastly different than the typical child support dispute, due to the considerable assets involved. However, the courts, as always, must have the best interest of the children in mind. Both parents are providing for the children; it is not Ms. Nash alone. Steve Nash is already paying for many of the children's expenses, including 90% of medical , school, and extracurricular expenses and 82% of the cost of the children's nanny. However, Ms. Nash does not feel that is enough and wishes for him to pay monthly child support, as well.

Arizona Judge finalizes divorce of NASCAR's Danica Patrick

Arizona residents will be interested to learn more about one high-profile couple who is putting the "brakes" on their marriage. Danica Patrick is a woman that is known for her speed on the track. Recently, she kept up her reputation for getting things done fast by finalizing her divorce from her husband Paul Hospenthal less than a year after she initially filed for divorce.

The high-profile couple was married for seven years. Patrick stated that the marriage was "irretrievably broken" on her Facebook page in November of 2012. Patrick's net worth has been estimated to be well over $10 million. She has been featured in advertising campaigns for several well-known companies, including GoDaddy and Coke Zero. She is considered by many to be one of the highest-paid athletes in the world. Her husband Paul Hospenthal is not involved in the racing world and is a physical therapist.

Arizona grandparents raising grandkids may get help from new bill

While many grandparents do not envision themselves taking another crack at parenthood, for some Arizona residents that is exactly what happens. Grandparents who are raising their grandchildren in Arizona may be interested to learn of a bill that is making its way through the Arizona legislature. If it becomes law, this proposed bill will have a definite effect on child custody for grandparents in the state.

The bill aims to assist grandparents who are raising their grandchildren and who are struggling financially. It is known as the "Grandparent's Stipend" bill and would provide $75 per month to grandparents for each grandchild who is in their custody. While this amount may not sound like a lot, for individuals who have extremely tight budgets, every dollar counts when it comes to supporting grandchildren financially when those grandchildren are in their physical custody.

US Supreme Court case has implications for Native American tribes

The United States Supreme Court will hear a case that has implications for Native American tribes in states across the nation. The brief in this case was prepared in Arizona in relation to a case where the rights of a Native American baby girl, her biological father and her adoptive parents all shall be weighed and examined.

The father's rights in this case are central to the issue and the decision whether or not the child should indeed have been returned to her Native American father will have a far-reaching affect.

Man wins Powerball and settles child support debt

Arizona residents may be interested to hear the story of one man who hit it big recently -- winning a Powerball jackpot of $338 million. When he won the lottery, the man was in arrears for his child support for close to $30,000. After winning, he has settled his child support debts. The man in this case has five children, three of whom will be coming to live with him now that he has the means to be able to provide for them.

Raising a child can be quite expensive. In Arizona, child support guidelines are set up in a manner that takes into account each parent's income, assets and earning capacity. The total child support amount approximates how much would have been spent on the children if the family were intact and assigns a proportionate share of the total child support amount to each of the parents. If a noncustodial parent is required to pay child support and fails to do so, then that parent may face penalties.

Oil baron Harold Hamm's high asset divorce threatens his empire

Divorce is never an easy time in the life of a couple, but a high asset divorce can pose exceedingly difficult issues for all parties. When a couple has higher assets, it's likely that the divorce will face media scrutiny as a high-profile divorce. Arizona residents who are contemplating divorce or who are currently in the midst of divorce proceedings should take note of the following story from a different state. This divorce highlights how unique and complex financial considerations are when considerable assets are involved.

The couple filed for divorce in May, 2012 in Oklahoma, due to the husband's alleged infidelity. Oklahoma is an equitable distribution state, meaning that the judge in that this case will need to divide property as equitably and fairly as possible. The husband owns 68 percent stake in Continental Resources, an asset valued at over $11 billion. While he began the business prior to his marriage to his second wife, the business grew significantly during their marriage. Furthermore, the man's wife also worked at the company, increasing her connection to that asset. This divorce may very well go down in the history books because the $11 billion stake in Continental is apparently one of the largest assets in the history of divorce property division.

Arizona Senate bill: Divorced parents must get 'OK' to move

The Arizona Senate passed a bill recently dealing with parental relocation that is now being sent to the House for consideration. Although this proposed change is not law yet, it is something of which Arizona residents who are dealing with child custody matters should be aware, because it is possible that it may indeed become law.

The proposed bill, authored by Senator Nancy Barto, requires that a parent who intends to move must notify the other parent of any intended move and provide them with a chance to object. Under the proposed law, if the custodial parent wishes to move and the noncustodial parent objects, the custodial parent will not be able to move unless a court order is obtained. Opponents of this bill suggest that victims of domestic violence may be at risk if the bill does indeed become law and also suggest that it will make it harder for a single parent to buy a house. The House will now consider this bill.

Even rich and famous movie stars ask for alimony after divorce

Divorced Arizona residents may be familiar with alimony as a form of spousal maintenance after a divorce. It is typically given to the spouse with the lower income. Alimony is not typically given to an ex-spouse who is worth millions of dollars. So then why would a movie star such as Demi Moore ask for alimony from soon-to-be ex-husband Ashton Kutcher?

Arizona residents may have heard about Kutcher's and Moore's relatively brief romance and subsequent divorce. The couple has been separated since November 2011, and the divorce has just been filed. Sources say that 50-year-old Moore is asking for alimony as a form of revenge after 35-year-old Kutcher allegedly cheated on her with a 23-year-old woman during their six-year marriage - on the night of their wedding anniversary, no less.

Do you need a lawyer for your divorce?

In many divorce cases, tensions are running high and spouses can have serious disagreements about matters of property division, alimony or child support and custody. However, that is not always the case. Perhaps you are lucky in that you and your soon-to-be ex spouse are on the same page about what will happen to your assets and finances.

In this situation, you and your spouse may have amicably decided that your marriage just won't work out and that it's time to part ways. It may be tempting to get your split over with quickly by using some standardized forms and foregoing the process of consulting with an attorney. However, you should proceed with caution if you're considering handling your divorce alone.

Wilson-Goodman Law Group, PLLC is one of the East Valley's premiere litigation law firms.

Gilbert Office
538 South Gilbert Road, Suite 101
Gilbert, Arizona 85296
Phone: 480-359-1758
Fax: 480-503-9219
Map & Directions

Queen Creek Office
22035 South Ellsworth Road
Queen Creek, Arizona 85142
Phone: 800-409-2187
Fax: 480-686-9452
Map & Directions

Visit Our General Practice Website

How Can We Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
FindLaw Network