Understanding the Collateral Source Rule in Arizona

In a nutshell, the “collateral source rule” is a rule that says an injured party who gets compensated from an unrelated source (such as a medical malpractice settlement) can accept the money and continue to sue the other party, such as the doctor or hospital. Even though injury victims are more likely to get better settlements with the collateral source rule, this rule is also used in child custody disputes in Arizona.

When it comes to child custody disputes in Arizona, there is one part of state law that may be being overlooked. This part deals with “financial payments,” which is another way of defining the word “collateral.” The Arizona law here (A.R.S. 25-327) suggests that if a parent has been receiving financial payments from someone, then that parent may not be rewarded a greater amount of financial support simply because they have been receiving assistance from someone else. While some people fight for sole custody of their children, others are looking for joint custody without having to share finances.

Many parents in Arizona who go for joint child custody run into this rule. Consider a scenario in which two parents receive 50/50 custody, and they also share joint finances. In this regard, it is generally believed that each parent has a responsibility to look after their child. While the parent with the most financial means may seem like a candidate to take care of the child, a judge will often look to see how long that person has been making financial payments. For example, if a parent is financially responsible one year prior to the custody dispute, then that parent should probably be doing well. But if that parent has only been making financial payments for a fraction of that time, whereas the other parent has been spending more time with the child, then that parent may actually be the one more inclined to take care of the child in the future.

According to the in-depth guide on comprehensive collateral source rule implications in Arizona, lawyers have been known to ignore these provisions when a child custody battle arises. The rule is commonly used against parents who are looking to get child support from a spouse. But, there are several reasons for custody battles in Arizona. Some people simply want to improve their relationship with their child and the rule may play a big part. There is also the potential for the “collateral source rule” to be made a part of a custody settlement. Since there is no benefit to the parent who needs the most help financially, the rule essentially says that the custodial parent should be the one with the most income regardless of how long financial support has been involved.

Ultimately, this is a complicated legal matter. Engaging in a child custody battle in Arizona can be tough, especially if the “collateral source rule” has gone unnoticed. This doesn’t typically happen unless both parents are in the same financial position, and the matter is going to court for a judge or jurors to decide. In some states, there is not even a formal rule regarding the above matter. State leaders in Arizona have suggested that the “collateral source rule” is being trampled by parents who do not make their financial incomes a part of the decision. Arizona is one of the few states to recognize the full “collateral source rule,” but the trouble is that from a legal perspective, it has not been properly defined.