Divorce Guide

Divorce Guide


Equitable Divorce Settlement


Most stressful issue which any couples face is divorce settlement. The decisions you take can have long term impact on not only on your financial situation but also can affect you mentally. To receive the equitable divorce settlement, financial planning is necessary. During the divorce process certain financial aspects should be considered. In such cases lawyers canít be as helpful as he may not be aware of the financial topics related to investment, tax issue and real estate.

Important Considerations during Equitable Divorce Settlement

  • Child support
  • Tax issues like alimony, tax credit
  • Investment assets
  • Income and expenses
  • Interest related to business
  • Value of property to be divided between both the parties

All these considerations are basically taken into account; however certified divorce financial analyst can be very helpful for providing long term affect of the settlement. It is best to take advice from the financial professional on matters related to the complex financial issues.

Guide to Equitable Divorce Settlement:

Once you make your decision regarding ending your marriage the very next step you should take is related to financial matters. Certain things are mentioned below to think on-

  • Make the copies of financial statements that can be useful as legal evidence. And keep a record of the money matters that are required to get divided
  • Pension plan is also another issue one should think on. The division of retirement asset such as 401k refers to the transfer of benefit obtained from the retirement from one spouse to another spouse
  • Some times 50/50 division of financial property can be a loss for one party who is undertaking the responsibility of the child , As it does not include the maintenance of the child. So one should take into consideration such issues from the future point of view in order to avoid the financial problems ahead
  • Social security can be another issue to consider. If you remarry before the age of 60 then you will not receive the amount from your ex-spouse unless your second marriage comes to an end.
  • You should select a good attorney who is an expert in settlement issues to get the best negotiation in the agreement.

Currently around 41 states are involved in equitable divorce settlement laws. Such laws depend on the length of marriage, age or standard of living during the marriage, and certain economical circumstances. Some state laws divide the marital property based on certain principle. Court can be a good choice to divide fairly between the two parties. Most of the states prefer to divide the property according to equitable distribution for which several factors are determined as mentioned above. However court may take action against the party responsible for misconduct that took place during marital status like adultery or abuse and decrease the property award. Judge can also take the decisions regarding the division of property as equitable on length of marriage or earning capacity of spouse.


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