According to Problem Gambling Arizona, almost 20% of all Arizona residents have experienced the negative impacts of gambling within the past year. The organization also estimates that almost 5% of the Arizona population may have a gambling disorder. This is a legitimate mental health issue – one that psychologists take seriously. In one study, the National Institutes of Health examined various divorce cases and discovered a complex relationship between marital status and gambling addiction. The study concluded that while gambling problems cause some divorces, the emotional turbulence of divorce may also lead to gambling. Gambling has varying implications, whether it occurs during marriage or after the date of separation. An experienced divorce lawyer in Arizona can help spouses explore various strategies, whether they engaged in gambling or were harmed by the addictions of their exes. To learn more about how this may affect asset division, consider calling Sullivan Shick PLC at our Mesa location at (480) 605-4880 or call our Glendale location at (623) 915-0944.
What Is Wasteful Dissipation of Marital Assets in Arizona?
Arizona is one of the few states to follow a system of “community property.” Under this system, the court divides all marital property and liabilities of a divorcing couple in half. In contrast, “equitable distribution” states take various factors into account during asset division to reach a more equitable outcome. In many of these equitable distribution states, the “wasteful dissipation of marital assets” is one of the many factors considered by family courts during asset division. A gambling addiction is a clear example of “marital waste.”
Although Arizona does not assess these factors in the same way, a spouse may still petition the court to examine the impacts of gambling addiction during their marriage. If this spouse can prove that their ex lost excessive amounts of community property during the marriage, they may receive a greater share of the remaining property. On the other hand, the spouse who gambled during the marriage may walk away with less than 50% of the remaining assets.
How Does Arizona Address Gambling Addiction During Asset Division?
Community property includes everything that a couple acquired during their marriage. When spouses divorce in Arizona, the court divides these assets in half. If a spouse successfully proves that their ex gambled away part of the community property, however, the court may need to take a slightly different approach. First, the court may include the gambling losses in the net community property. For example, a spouse might have gambled away $100,000 over the course of their marriage. If the remaining community property is $900,000, the court may increase this sum to $1,000,000 – even if the last $100,000 no longer exists.
Next, the family court may treat the lost $100,000 as a distribution to the spouse with the gambling addiction. In other words, the court assumes that the spouse has already received their gambling losses as part of the community property settlement. As a result, the spouse with the gambling addiction would receive $400,000 of the $900,000 remaining funds – while the “innocent” spouse would receive $500,000.
What if I Gambled After the Date of Separation?
As various studies note, the psychological impact of divorce can cause spouses to engage in addictive behaviors – even if they never exhibited these behaviors during marriage. A spouse who learns of an impending divorce may feel tempted to gamble excessively. This can affect divorce differently than gambling during marriage. First, spouses should know that assets acquired after the date of separation are “separate property.” For example, a spouse who receives a paycheck a month after moving out of the family home can probably keep these funds without dividing them with their ex. If they begin gambling away these separate assets, there are few implications to consider. The losses (or gains) are theirs, and theirs alone.
On the other hand, the spouse might gamble community property after moving out of the family home. They may sell the family jewelry collection for money to fuel their gambling addiction. Perhaps they took family heirlooms to the local pawn shop to gain more gambling funds. Some spouses may even empty out their family bank accounts and head straight to the casino. Sometimes, a spouse in this situation has no intention of winning – and in fact they plan to lose the family fortune simply to spite their ex. This highlights the need for restraining orders and other legal safeguards to freeze assets and prevent waste during divorce. Spouses who believe their exes are prone to this type of behavior may wish to discuss potential safeguards with the experienced attorneys at Sullivan Shick PLC.
Do I Have to Divide Gambling Winnings During Divorce in Arizona?
All assets acquired during marriage become community property – including gambling winnings. As a result, spouses will need to divide any money they won via gambling with their exes during asset division. This may seem unfair to some, since spouses may shoulder 100% of their losses while keeping only 50% of their winnings. However, it could be difficult for spouses to locate gambling winnings, since they may be concealed. Spouses may have hidden their gambling winnings in a safety deposit box or another undisclosed location, and their exes may struggle to receive a fair share of the community property. A forensic accountant may be able to help locate these concealed assets.
Address Gambling Addiction in Divorce With Sullivan Shick PLC
A gambling addiction has the power to end marriages, and this destructive power can continue to affect financial well-being long after spouses finalize their divorces. Spouses who find themselves in this situation should do what they can to mitigate financial damage and achieve positive asset division outcomes. According to Arizona family courts, spouses who engage in this wasteful behavior may receive less during divorce. On the other hand, the “innocent” spouses in these marriages may walk away with a greater share of community property. However, each marriage is slightly different – and there are many different activities that the court may define as problematic gambling. These include not only “traditional” casino games but also online sports betting, certain cryptocurrency activities, and much more. Spouses may want to discuss their specific circumstances in more detail with experienced Arizona asset division attorneys. To learn more about how to address this complex situation during divorce cases, consider calling Sullivan Shick PLC at our Mesa location at (480) 605-4880 or call our Glendale location at (623) 915-0944.