In a divorce, there are assets, i.e., things. And there are children.

And straddling both of those camps, are pets.

In the eyes of the law, they’re “assets.” Things that may have been “acquired,” either before the marriage by one spouse (making that pet “separate property”) or during the marriage (making that pet “community property”).

If you’re reading this, and you have a pet, I know you’re not thinking of that little critter as a “thing” or an “asset,” let alone one that can be divided, King Solomon-like, in the event of a divorce!

So this is a tricky subject, even for me—and I’m a CPA, a CERTIFIED FINANCIAL PLANNER^® professional, and a Certified Divorce Financial Analyst^® professional. That said, I can weigh in and help you with some of these issues.

Who gets what

In a divorce, pets are often treated like children, in terms of custody agreements, visitation rights, and medical decision-making authority. Here are some other factors: Arizona judges will consider the wellbeing of the involved children: those kids need their pets, too. Conversely, if there’s a history of domestic violence in the marriage, the violent spouse is less likely to get custody of that pet.

Then there are service animals. That animal would clearly go with the spouse it serves. But if it serves one of the children, then that animal would go with that kid—and travel with that kid, wherever the kid goes.

Who pays for what

Animals aren’t exactly inexpensive. The American Pet Products association estimates that the annual U.S. costs for cat ownership are about $727; for dogs, it’s $1,077. And the sad truth is that pets don’t get cheaper to care for as they age; the opposite is true.

Which leads to pet trusts. Yes, they exist, and you can create one. It exists to ensure care of the pet, for the rest of its life, in the event of an owner’s death or disability. It sets aside money for the care, and names a trustee—a person—as the designated caregiver. It’s a logical move if, say, you’re older and you expect the pet to outlive you.

That’s pretty straightforward. But in divorce, of course, it can get more complex. If the trustee is, say, your sister-in-law, she might not want that role anymore, post-divorce. And what if that pet happens to be, say, a prize-winning show dog? Then it’s not just an “asset.” It’s also a revenue stream.

How I can help

The AFI—the Arizona Affidavit of Financial Information—is the first form you need to fill out when you’re divorcing. It asks you to list all your income and expenses. And people often overlook the expenses of pet ownership. I can help you with that, to help your attorney ensure you get an equitable settlement. And by the way, I have two dogs—Oliver and Stella. And I’m divorced. I can relate.

Speaking of equitable settlements, I now offer a new service—I call it my Settlement Assurance Review—in which, for a nominal fee, I’ll review a proposed settlement for any hidden financial issues or tax implications, before it goes to court or mediation. It’s a great option for giving you (and your attorney) extra peace of mind.

Want to learn more? Contact me today and let’s talk.

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