4 Tips for Divorcing Spouses
The Fort Wayne News Sentinel is running a series under the heading "Flying Solo" where they will set out 20 Tips for divorcing spouses. They have released the first four. They are as follows:
TIP No. 1: DIVORCE IS NOT AN OVER-AND-OUT TRANSITION: Because there are often continued emotional and economic ties after divorce - especially when you have children or when you are paying/receiving alimony, child support, and the like - you can't look at divorce as an "over-and-out" transition. You should not look only to short- term "fixes," but also to long-term goals such as establishing your own credit, payment options for your children's educations, tax issues, security for payments due to you, and beginning to plan for your estate, health care, and retirement, even before you divorce.
TIP No. 2: GETTING SECURITY FOR PAYMENTS DUE YOU IS IMPORTANT: If you are receiving child support or alimony, security for payments you are receiving is something that should not be overlooked. Using the guidelines contained in the law of your state of residence, your lawyer will help you secure future payments with life insurance or assets because without it, should the paying spouse die before the obligation is completed, the recipient spouse and children may receive nothing more than Social Security. Sometimes, it may be a good idea for you yourself to pay for the cost of coverage on the spouse who is paying alimony/child support.
TIP No. 3: DEALING WITH PENSIONS AND TAX QUALIFIED PLANS MAY BE DIFFICULT: Because there are different rules for different types of pensions, and because there are alternatives available regarding lump sum or monthly distributions after retirement, find out early which rules apply to your particular situation and the best way to get your share. With so many defined benefit plans being under-funded these days, valuation of these plans may be difficult and expensive, so make sure to have a qualified valuation analyst give you an opinion.
TIP No. 4: DEALING WITH THE FAMILY HOME CAN BE A VOLATILE ISSUE: Along with pensions and retirement plans, the family home may be the largest asset acquired during the marriage. In many states, courts deem it unfair to allow one party to use the residence for a long time and thereby tie up the other spouse's equity. Although your home may have appreciated, if you sell it, you will probably purchase less of a house and have higher monthly payments. Unless there is an agreement to the contrary, you should figure out ways to pay your spouse his/her equity or offset that equity against other assets to keep your home, especially while your children are young.