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Basic Principles Of A Financial Settlement
A financial settlement is something that a couple who is going through a divorce may want to try, instead of going through the stress of a trial in court, to divide their assets. This is easier and more cost effective for both parties so that they may get what assets they deserve and move on with their lives. There are several factors that need to be decided in a financial settlement.
First, if there are children involved then some kind of child maintenance will need to be determined. You may decide that if the parent who has the children makes a considerably less amount than the other parent, then a large monthly child maintenance payment should be made. You may also decide that if the parent who has the children makes a considerably larger amount than the other parent, then a smaller monthly child maintenance payment may suffice. On the other hand, if you both have equal custody and you both make an amount that is close to equal, you may decide on no child maintenance arrangement at all. How you work out child support needs to be fair to both parties and, if you are the party that may need to pay the maintenance, remember it is for your children and their living expenses so try to give them a reasonable amount.
If there are no children, then you may want to consider spousal maintenance. This is usually not something that anyone who is getting divorced usually wants to pay, but it may be necessary. For example, if your spouse has never worked outside the home and needs time to get the training needed to land a job and support her or himself, she or he may need spousal maintenance, at least temporarily. You may not want to pay spousal support but, if it goes to court, you may be ordered to. At least by working it out between the two of you, you have more of a say in how much you will pay and how long you will continue to pay it.
Division Of Assets
The last aspect that needs to be considered is the division of assets. These assets include the house, cars, savings, stocks, and items inside the house, or anything that was bought or acquired during the marriage. It is important not to get too greedy during this phase of your financial settlement. This is especially important if you make a great deal more money than the other party and are not getting custody of the children because, if it does go to court, the one who makes the least amount of money and has custody of the children is more likely to receive a majority of the assets though the court system. The best way to go about this is to be fair to each other. For example, if you want the house then give your spouse 85% of the monetary assets instead of 50% or give her or him the house in exchange for a large portion of the monetary assets. You may even want to consider selling large assets, such as the family home, that neither of you can agree on, and split the profit down the middle.
When working out a financial settlement, it is important to remember that this is a means of keeping the two of you out of court (just like any other legal settlement) and that will require compromise from both sides. You will both have to give a little to make it work. In the end, a financial settlement may be best for both parties involved because it will keep the two of you out of a courtroom, from spending a large amount of money on legal expenses, and hopefully help keep the two of you on good terms with each other.