Divorce Settlement Agreement - Arizona

MARITAL SETTLEMENT AGREEMENT

(Arizona – Comprehensive Divorce Settlement Template)

TABLE OF CONTENTS

1. Document Header
2. Recitals
3. Definitions

4. Operative Provisions
   4.1 Dissolution Proceedings
   4.2 Division of Community Property and Allocation of Debts
   4.3 Spousal Maintenance
   4.4 Child-Related Matters
   4.5 Insurance & Beneficiary Designations
   4.6 Name Restoration

5. Representations & Warranties

6. Covenants & Restrictions
7. Default & Remedies
8. Risk Allocation
9. Dispute Resolution
10. General Provisions
11. Execution Block
12. Notarial Acknowledgments
13. Exhibits & Schedules

1. DOCUMENT HEADER

Marital Settlement Agreement (the “Agreement”) entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

a. [SPOUSE A FULL LEGAL NAME], residing at [ADDRESS] (“Spouse A”); and
b. [SPOUSE B FULL LEGAL NAME], residing at [ADDRESS] (“Spouse B”, and together with Spouse A, the “Parties” and each, individually, a “Party”).

2. RECITALS

A. The Parties were legally married on [MARRIAGE DATE] in [CITY, STATE] and have since acquired certain rights, duties, and obligations arising out of that marriage.
B. Irreconcilable differences have caused the irremediable breakdown of the marriage, and the Parties desire a comprehensive settlement of all matters, including property division, allocation of debts, spousal maintenance, child-related issues, and any other marital rights and obligations.
C. Each Party acknowledges having made a full and complete disclosure of all assets, liabilities, income, and expenses as required under Ariz. Rev. Stat. Ann. § 25-318 and Arizona Rule of Family Law Procedure 49.
D. The Parties enter into this Agreement freely, voluntarily, and without undue influence, intending that it be incorporated into any final Decree of Dissolution of Marriage issued by the Superior Court of the State of Arizona in and for [COUNTY] (the “Court”).

NOW, THEREFORE, in consideration of the mutual covenants and promises herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

3. DEFINITIONS

For purposes of this Agreement, capitalized terms shall have the following meanings:

“Agreement” has the meaning set forth in the Document Header.
“Child” or “Children” means the minor child(ren) of the Parties: [NAME(S) AND DATE(S) OF BIRTH].
“Child Support Guidelines” means the Arizona Child Support Guidelines adopted pursuant to Ariz. Rev. Stat. Ann. § 25-320.
“Community Property” has the meaning given in Ariz. Rev. Stat. Ann. § 25-211 and includes all property acquired by either Party during the marriage except Separate Property.
“Court” has the meaning set forth in Recital D.
“Debt” means any secured or unsecured obligation for which either Party is legally liable.
“Legal Decision-Making” has the definition set forth in Ariz. Rev. Stat. Ann. § 25-401.
“Parenting Plan” means the detailed parenting time schedule attached hereto as Exhibit A.
“Separate Property” means property owned before marriage, acquired by gift or inheritance, or otherwise qualifying as separate property under Ariz. Rev. Stat. Ann. § 25-213.
“Spousal Maintenance” means support payable pursuant to Section 4.3.

4. OPERATIVE PROVISIONS

4.1 Dissolution Proceedings

4.1.1 Joint Petition. Within [NUMBER] days after the Effective Date, the Parties shall file a joint petition or stipulation for dissolution requesting that the Court incorporate this Agreement into the final decree.
4.1.2 Cooperation. Each Party shall execute all pleadings, affidavits, and ancillary documents reasonably necessary to obtain entry of the decree consistent with this Agreement.

4.2 Division of Community Property and Allocation of Debts

4.2.1 General Rule. The Parties acknowledge Arizona’s community-property framework (Ariz. Rev. Stat. Ann. § 25-318) and agree to the allocations herein in full satisfaction of any community or quasi-community property claims.

4.2.2 Real Property.
a. Marital Residence located at [ADDRESS AND LEGAL DESCRIPTION] shall be conveyed to [SPOUSE A / SPOUSE B / THIRD-PARTY BUYER].
b. Closing shall occur on or before [DATE], with net sale proceeds or equity to be divided [PERCENTAGE/PERCENTAGE] between the Parties.
c. The receiving Party shall refinance and remove the non-receiving Party from all encumbrances within [NUMBER] days post-decree.

4.2.3 Retirement Assets.
a. [PLAN NAME] held in the name of [PARTY] shall be divided via a Qualified Domestic Relations Order (“QDRO”) allocating [PERCENTAGE] of the community interest to [ALTERNATE PAYEE].
b. The Parties shall share equally the cost of preparing and implementing each QDRO.

4.2.4 Personal Property. Tangible personal property is divided per the inventory attached as Schedule 1. Possession shall transfer within [NUMBER] days post-decree.

4.2.5 Financial Accounts. Bank, brokerage, and cryptocurrency accounts are allocated per Schedule 2. Any inadvertent omission shall be addressed under Section 8.2 (After-Discovered Assets).

4.2.6 Debts. As between the Parties, the Party identified in Schedule 3 shall pay each assigned community Debt and indemnify the other under Section 8.1. This allocation does not by itself release either Party from liability to a creditor; any creditor release must be obtained separately.

4.2.7 Equalization Payment. To effectuate equitable division, [PAYOR NAME] shall pay an equalization payment of $[AMOUNT] to [PAYEE NAME] no later than [DATE], with interest at [RATE]% per annum on any unpaid balance.

4.3 Spousal Maintenance (Ariz. Rev. Stat. Ann. § 25-319)

4.3.1 Entitlement. The Parties agree that [SPOUSE A / SPOUSE B] qualifies for spousal maintenance.
4.3.2 Amount & Duration. [PAYOR] shall pay $[AMOUNT] per month, commencing on [DATE] and continuing for [DURATION IN MONTHS/YEARS], subject to the termination terms selected below and any later court order. Unless the Parties otherwise agree in writing or the decree expressly provides otherwise, future maintenance terminates on either Party's death or the recipient's remarriage under A.R.S. § 25-327(B). Any agreed exception must be stated here and in the decree: [NONE / SPECIFY EXCEPTION].
4.3.3 Tax Treatment. For an agreement executed after December 31, 2018, spousal maintenance is not deductible by the payor and not includible in the recipient's gross income under current federal law.

DRAFTER'S NOTE: Payments under an instrument executed before 2019 generally retain the former deductible/includible treatment. A later modification switches to the post-2018 treatment only if it expressly states that the repeal of the alimony deduction applies.
4.3.4 Modifiability. The Parties request that the decree state whether maintenance is [modifiable / nonmodifiable], subject to A.R.S. §§ 25-317(F)-(G) and 25-327. This selection has effect only to the extent approved and ordered by the Court.

4.4 Child-Related Matters

4.4.1 Legal Decision-Making

a. The Parties shall have [joint / sole] legal decision-making authority in the best interests of the Children in accordance with factors under Ariz. Rev. Stat. Ann. § 25-403(A).
b. Major decisions (education, non-emergency medical, religion) require mutual agreement; absent agreement, either Party may petition the Court.

4.4.2 Parenting Time

a. Parenting time shall be governed by the Parenting Plan (Exhibit A).
b. Exchanges shall occur at [LOCATION]; the receiving parent is responsible for transportation unless otherwise agreed.

4.4.3 Child Support

a. Guideline Calculation. Child support is set at $[AMOUNT] per month, payable by [PAYOR] to [PAYEE], pursuant to the Child Support Guidelines and Ariz. Rev. Stat. Ann. § 25-320.
b. Payment Method. Payments shall be made through the Arizona Support Payment Clearinghouse via income withholding order.
c. Adjustments. The existing child-support order remains in effect unless and until the court modifies it. A party may petition the court to modify support upon a substantial and continuing change of circumstances. Under the simplified procedure in the Arizona Child Support Guidelines, a new guideline calculation that varies at least 15% from the existing ordered amount is evidence of such a change; a change in combined income alone does not automatically alter support.

4.4.4 Health Insurance & Unreimbursed Expenses

a. [PARTY] shall maintain comprehensive medical, dental, and vision insurance for the Children.
b. Unreimbursed expenses shall be shared [PERCENTAGE/PERCENTAGE], payable within 30 days of documented demand.

4.4.5 Tax Exemptions

Beginning tax year [YEAR], the Parties shall alternate the federal and state child-related tax exemptions, with [PARTY] claiming in even-numbered years and [PARTY] in odd-numbered years, contingent upon IRS eligibility requirements and current support compliance.

4.5 Insurance & Beneficiary Designations

Each Party shall name the other, or the Children in trust, as irrevocable beneficiary of life insurance policies in the face amount of at least $[AMOUNT] until Spousal Maintenance and Child Support obligations terminate.

4.6 Name Restoration

Upon entry of the decree, [SPOUSE NAME] may resume the use of former legal name: [FORMER LEGAL NAME].

5. REPRESENTATIONS & WARRANTIES

5.1 Authority. Each Party has full legal capacity and authority to enter into and perform this Agreement.
5.2 Disclosure. Each Party represents that all material assets, liabilities, income, and expenses have been fully disclosed.
5.3 Independent Counsel. Each Party has been advised of the right to independent legal counsel and either has retained such counsel or voluntarily chosen not to do so.
5.4 No Reliance. No Party relies on any statement or promise not expressly set forth in this Agreement.
5.5 Enforcement. The Parties may ask the Court to enforce the terms incorporated into the decree, subject to A.R.S. § 25-317(E).

6. COVENANTS & RESTRICTIONS

6.1 Further Assurances. The Parties shall execute any additional instruments and take such further actions as may be reasonably necessary to effectuate this Agreement, including deeds, titles, QDROs, and service transfer documents.
6.2 Non-Interference. Neither Party shall willfully interfere with the parenting time or decision-making rights of the other.
6.3 Notice of Change. Each Party shall provide the other with at least 30 days' prior written notice of an employment change or other material change affecting obligations herein. For relocation of a child, where both parents have joint legal decision-making or parenting-time rights by written agreement or court order and both reside in Arizona, a parent shall give at least 45 days' advance written notice before moving the child out of state or more than 100 miles within Arizona, using a method permitted by A.R.S. § 25-408(B), unless § 25-408(D) applies. Any other relocation remains subject to the governing order and applicable law.

7. DEFAULT & REMEDIES

7.1 Event of Default. Failure to perform any material obligation (including timely payment of support or execution of transfer documents) constitutes an “Event of Default.”
7.2 Notice & Cure. For a breach of a property-transfer or reimbursement term, the non-defaulting Party shall give written notice identifying the breach and allow [NUMBER] days to cure. This private notice provision does not delay court-ordered support or restrict a Party's right to seek relief from the Court.
7.3 Remedies. Upon uncured default, the non-defaulting Party may:
a. Seek specific performance, contempt, wage assignment, or judgment from the Court;
b. Request attorney fees and costs if the Court awards them under applicable law;
c. Request any offset that the Court permits;
d. Pursue any other remedy available at law or in equity.

8. RISK ALLOCATION

8.1 Mutual Indemnification

Each Party (the “Indemnifying Party”) shall indemnify, defend, and hold harmless the other from any Debt, tax liability, or obligation assigned to the Indemnifying Party herein, together with all losses, costs, and attorney fees arising therefrom.

8.2 After-Discovered Assets

The Parties shall disclose any omitted asset or liability and seek a written agreement or court order addressing it. Under A.R.S. § 25-318(D), community, joint-tenancy, and other commonly held property omitted from the decree is held from the decree date as tenants in common, each with an undivided one-half interest. Omitted liabilities require separate treatment; this clause does not reclassify them as community property or bind creditors.

9. DISPUTE RESOLUTION

9.1 Governing Law. This Agreement is governed by and construed in accordance with the domestic relations laws of the State of Arizona.

9.2 Court Enforcement. A Party may apply to the Court for enforcement of terms included in the decree under A.R.S. § 25-317(E), subject to the Court's jurisdiction and applicable procedure.

9.3 Protective Relief. Nothing in this Agreement limits a Party's ability to request protective or other available relief from a court.

10. GENERAL PROVISIONS

10.1 Entire Agreement. This Agreement, including all Exhibits and Schedules, constitutes the entire understanding between the Parties and supersedes all prior agreements.
10.2 Amendments. No amendment is effective unless in a writing signed by both Parties and, where required, approved by the Court.
10.3 Severability. If any provision is held invalid or unenforceable, the remaining provisions remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to make it valid and enforceable.
10.4 Assignment. Rights and obligations herein are personal and non-assignable without prior written consent, except to a trust benefitting the Children.
10.5 Successors & Assigns. This Agreement binds and benefits the Parties and their respective heirs, personal representatives, and permitted assigns.
10.6 Headings. Section headings are for convenience only and do not affect interpretation.
10.7 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is an original and all of which constitute one instrument. Facsimile, PDF, and electronic signatures are deemed originals.

11. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Marital Settlement Agreement as of the Effective Date.

12. NOTARIAL ACKNOWLEDGMENTS

13. EXHIBITS & SCHEDULES

• Exhibit A – Parenting Plan
• Schedule 1 – Personal Property Allocation
• Schedule 2 – Financial Accounts Allocation
• Schedule 3 – Community Debts Allocation
• Exhibit B – Sample QDRO Outline (optional)