Let’s face it. Years of romance can lead to a bitter end and before you know it, you’ve finally decided on getting a divorce. Hostility and emotions are rampant during the divorce process. However, couples can make their situation lighter by trying to sit down and settle all issues outside the courtroom. After drafting a settlement and going over all items and issues that need to be addressed, each spouse must go through it thoroughly.
Unfortunately, this does not work for most couples. In this case, a marital settlement is drafted, which is typically incorporated into the formal divorce order from the court. Below are just some things discussed in a divorce settlement.
Custody arrangement is one of the primary things that need to be addressed in a divorce settlement. Will one parent have the main custody over the children or will you agree on joint custody? A parent that is not given primary custody has the right to a visitation schedule. The draft must specifically determine the specific days of the week and holidays that visitation is allowed. The court helps come up with the best arrangement for the best interest of the child/children.
If there are children that are about to enter college, the parents must consider how the school expenses will be paid. Should the cost be divided equally? Can the other parent afford to provide more? In some cases, higher education cost is discussed in a separate agreement because it involves larger amounts.
A couple will need to decide who gets the car, the house, and other properties purchased within and before the time of marriage. The distribution takes into consideration the value of the property, the liabilities associated with the property, and whether it is a separate or marital property.
Division of Debts
The court will help determine the debts acquired during and before the marriage and whether a certain debt is under the name of one spouse. The responsible spouse will have to remove the other spouse from the loan to avoid financial conflicts. If the debt was acquired by the couple, the responsibility is divided equally into both spouses.
There are tax implications to consider during a divorce settlement. During property division, for instance, there are tax implications involved in retaining a property. The court will help determine who will be responsible for the taxes owed. Capital gains are also considered as far as dividing assets are concerned.
Both parents need to agree on who will be responsible in paying for the health insurance policy and other insurance policies that concern the family. Can the other parent better afford the payment of the insurance? Will both parents shoulder the responsibility? If so, will the cost be split equally?
As for life insurance, the court may require the non-custodial parent to retain their life insurance policy and list the children as beneficiaries.
Retirement benefits are considered a marital property. However, the court will have to determine whether a spouse is entitled to the retirement plans based on the length of the marriage and their lifestyle during the marriage.
Whatever your concerns, when it comes to divorce it is always best to consult lawyers, like the attorneys at Prime Lawyers. They can discuss with you issues specific to your situation.
This post was sponsored by PrimeLawyers.com.au