Financial Aspects to Consider in a Divorce

A divorce can become a stressful situation, depending on your situation you may have high valued assets to divide, children with disabilities or other aspects that make this legal process more complicated. There are several issues that should be considered in a divorce, especially financial ones. Some of them may be more complex like the division of a joint business, or dividing retirement accounts, others are more straightforward like deciding to sell the marital home. These are some of the main financial aspects to consider during a divorce.

What to do With the Marital Home

Deciding what to do with the marital home in a divorce can be complicated. Couples have several options, a common decision that ex-spouses take is to sell the home and divide the earnings. Another option is the parent with primary child custody keeps the home as they will be living with the children most of the time and it will be best if they stayed at home. You could also decide to rent the house and split the earnings. Whichever decision you take, make sure that you thoroughly discuss each option with your lawyers and your ex-spouse and how it will affect your family’s future.

Child Support Payments

Determining child support payments can be complicated, a divorce lawyer can help you and your ex-spouse make this calculation. The courts will consider several aspects when deciding on the amount of support, some of these factors include:

- The custodial parent’s income and financial resources.

- The standard of living the child had during the marriage.

- The educational needs of the child.

- The non-custodial parent’s needs and financial resources.

Depending on your income or financial situation, not receiving enough child support or paying out too much could severely impact your standard of living. Discuss your financial situation with your lawyer so that you achieve an outcome that covers your family’s needs while staying on budget.

Alimony or Maintenance Payments

Alimony or maintenance payments are given to an ex-spouse following separation or divorce, if you earn significantly more than your spouse and have been married for several years, you will probably be ordered to pay alimony. There are some instances when you may not be required to pay alimony, these include if your ex-partner and you earn close to the same amount, or if your marriage was very short. You and your spouse can agree on the amount and length of time that alimony will be paid, or a court can evaluate your case and set the terms for you.

Dividing Retirement Accounts

When dividing retirement accounts in a divorce you must determine if the account is considered marital or separate property. If it’s marital property then the account will be subject to division, if the account is separate then it’s not. Sometimes only part of a plan was accumulated during the marriage, so this portion will only be divided. After you have determined what portion of the plan is subject to division, you and your spouse can decide how to split it or leave it up to a court to make a decision.

A divorce is a lengthy legal process with many factors that have a severe impact on your future. Many of these factors can have a significant impact on your finances. It’s important that you discuss your goals and financial situation with your lawyer so that they fight for an outcome that not only protects your interests but is the best for your family as well.