Negotiation Exercise
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School
University Of Arizona *
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Course
456
Subject
Law
Date
Jan 9, 2024
Type
Pages
4
Uploaded by ChiefBook8121
Introduction to Family Law
Professor Atwood
Law 456/556
Negotiating a Separation Agreement
Instructions
THIS IS AN INDIVIDUAL ASSIGNMENT, NOT A GROUP
ASSIGNMENT.
YOU ARE PLAYING THE ROLE OF BOTH SPOUSES FOR THIS
NEGOTIATION.
For this exercise, you will negotiate a separation agreement (sometimes called a
“divorce settlement” or “marital settlement” agreement) based on the Fact Pattern below.
You need to resolve questions relating to property division, debt, and spousal
maintenance.
Y
ou will play the role of Hank’s lawyer, and will play the role of Wanda’s
lawyer.
Before negotiating, try to determine what the law would most likely provide on the
facts.
In other words, try to determine the default position under Arizona law.
That
default position, tilted as favorably toward your client’s situation as is reasonable,
generally provides a starting point for negotiating.
After you have an idea of what the
law provides, then you can begin the negotiation.
Wanda’s lawyer should first make an offer by email of the terms of an agreement
that Wanda would sign.
Then Hank’s lawyer can respond with a counter-offer containing
terms that are favorable to Hank.
Wanda’s lawyer can then respond to Hank’s offer, and
so forth.
Please continue this back-and-forth negotiation until you’ve reached an
agreement that both sides are willing to sign.
If no agreement is possible as to certain
issues, identify those issues in your final submission.
Keep in mind that failure to agree
means you and your clients will face expensive, time-consuming, and emotionally-
exhausting litigation.
I suggest that you spend no more than 60 minutes in negotiation.
Once you have settled on the terms of an agreement, enter the terms of the
agreement on the attached form.
If no agreement was reached as to particular issues,
explain in writing the reasons.
Fact Pattern
Hank and Wanda were married in January 2013 in Flagstaff, Arizona, when each
of them was 30 years old.
At that time, Hank was working as a bartender, but he had just
been accepted into the James E. Rogers College of Law in Tucson.
Wanda worked as a
rock-climbing instructor during the summer and a ski-instructor during the winter.
Right
after the wedding, Wanda’s parents presented the couple with a big SUV so that Wanda
could safely drive through country terrain.
Only Wanda’s name is on the car title.
Hank
remembers Wanda’s parents saying to him, “We wanted to give you something useful in
celebration of your wedding.”
Hank and Wanda moved to Tucson in August 2013, and Wanda got a job as a
fitness instructor in a local fitness club.
From 2013 through 2016, her average annual
earnings were $30,000.
Wanda paid all of the couple’s living expenses during this
period.
Hank took out student loans to pay for his tuition and books.
At the beginning of their relatively short marriage, Hank and Wanda were quite
happy.
Wanda gladly supported the two of them, since she believed in Hank’s
intellectual abilities and was confident that he would be a very successful lawyer.
Hank
worked very hard in law school, keeping long hours and studying with a ferocious desire
to succeed.
During the three years that it took Hank to complete the J.D., the couple
lived on Wanda’s income and were able to save only a few thousand dollars – which they
kept in their joint bank account.
While Hank was in law school, he inherited $300,000 from a great aunt and used
the money to buy a condominium which he paid for in full.
Feeling very committed to
Wanda at that time, he titled the condo in both of their names as joint tenants.
By the time of Hank’s third year in law school, the honeymoon was definitely over.
The couple fought a fair amount, and Hank began a sexual relationship with one of his
law school classmates.
When Wanda discovered this infidelity, she was angry and hurt.
Wanda moved out of the condominium in January 2016.
She rented a modest apartment
and began to subscribe to on-line dating services.
Hank did quite well in law school and ranked near the top of his class.
In the
spring of 2016 he accepted a job as an associate at a major New York law firm, to begin
in August, with a starting salary of $165,000.
When Wanda heard about Hank’s job offer, she used the couple’s credit card to
buy $10,000 worth of high-end furniture.
She also had elective cosmetic surgery that
same month at a cost of $25,000.
Wanda did not consult Hank before the surgery.
Hank filed for divorce in June 2016.
The parties’ known assets and their fair
market value at the time that Wanda was served with the petition consisted of the
following:
SUV, titled in Wanda’s name
20,000
Condominium, title in joint tenancy
350,000
Joint bank account
5,000
Household effects, computers, etc.
5,000
In terms of liabilities, the parties have student loan debt, credit card debt, and the
expense of Wanda’s surgery.
The credit card debt consists of Wanda’s furniture
purchases, interviewing clothes for Hank, and jewelry costing $3,000 that Hank
purchased for his new girlfriend.
Student loan for law school
80,000
Joint credit card
15,000
Wanda’s surgery
25,000
Wanda, who now earns about $25,000 per year as a fitness instructor, aspires to
buy her own gym and establish a fitness program for older women.
Her living expenses
are approximately $5000 per month, including food, housing, health care, and
incidentals.
Hank’s projected living expenses in New York City will be about $8,000 per
month.
Both Hank and Wanda expect their lawyers to represent them vigorously.
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SEPARATION AGREEMENT BETWEEN HANK AND WANDA
I.
DIVISION OF PROPERTY
Asset
Value
Allocation (H or W)
SUV
Joint bank account
Condominium
Household effects
II.
ASSIGNMENT OF DEBT
Liability
Amount
Allocation (H or W)
Credit card
Wanda’s surgery
Student loan
III.
SPOUSAL MAINTENANCE
a.
_______Neither party will owe spousal maintenance to the other.
b.
Hank will pay spousal maintenance to Wanda at the rate of
___________per month for ____ months / indefinitely.
c.
Spousal maintenance will be modifiable / non-modifiable.
d.
Spousal maintenance will terminate in the event of [Wanda’s death]
[Hank’s death] [Wanda’s remarriage] [other circumstance described below]
__________________________________________________________________
__________________________________________________________________