The grey divorce trend hits Arizona. Common themes include the kids are off to college or living on their own, the family business is sold or managed by others or the couple simply wants to go a different direction. No animosity, but the legal divorce means a total reset to each person’s estate plan. Issues to address include properly documenting the separation of assets, naming new successor fiduciaries, altering the distribution scheme and cleaning up unresolved financial issues left over from the divorce proceeding. DeAngelis Legal recently spent a significant amount of time cleaning up the balance sheets of several clients post-divorce. In one such instance the divorce attorneys agreed to redeem a withdrawing partner’s interest in an LLC taxed as a partnership instead of assigning the interest to the remaining spouse. Failing to correctly document these transactions causes unintended consequences. Small unresolved issues become large litigated cases if not addressed.
