Whenever a divorce happens, all of sudden the financial condition of a spouse comes under the microscope and it has been observed that more often than not there is not a guarantee of a stable income and there have been instances where things went out of control to say the least. The source of income post a divorce is often seen to be inconsistent without having a good reliance of meeting the financial needs of the spouse. There had been numerous fake promises which were committed by the payee with no concrete actions whatsoever. However, this kind of situations could be easily avoided with the help of structured settlements. What that will do is it will not only guarantee the spouse with a consistent source of income in periodic intervals but also make sure that the spouse gets all the benefits which were being promised by the payee at the time of divorce.
Seek counsel from a divorce attorney for more details.
Beneficial for both the parties
The best thing in applying structured settlements for divorce negotiation is the fact that it is beneficial for both the payee as well as the receiver. Some of the advantages have been listed below for your reference:
Benefits for receivers: The biggest benefit for a receiver is the sense of security it brings in divorce negotiations. You can free yourselves from all kinds of worries because you will get all the things which you. The payments will be contractually guaranteed with no market risks tied to them. The mode of payment will be flexible and will be distributed in long intervals.
Benefits for payees: After a divorce, the payees would not like to remain in touch with the receiver and they try every means to maintain distance because divorce is always a very nasty affair to deal with. Having structured settlements as a part of the divorce process, you can free yourselves from any kind of attachment from your ex-spouse. You can also save a lot of money if you resort to making this kind of a settlement in a structured manner.
The process
A structured settlement in divorce negotiations usually is a very simple process and there is no rocket science involved in it. A settlement planner plays an extremely critical role in such settlements and the financial advisor gets in touch with him in order to have a seamless settlement. The planner discusses all the pros and cons which are associated with the process of divorce and what his/her needs for future are. The spouse is also made aware about the consequences of taxes associated with such a settlement. The best aspect of having a settlement planner work on behalf of you is that there isn’t any additional cost involved in it and you can avail the services free of co
Once the process of paying in parts is over, the Payee decides whether or not the payment should be a periodic one or a lump sum one. The agreement which allows the payer spouse to make periodic payments is known as Marital Settlement Agreement. An assignment company is selected and the payee transfers the lump sum amount with discounted rates. It is extremely important to reach out to an assignment company because this will eventually help you to save a lot of taxes in the long run.
Application of structured settlements in divorce negotiations
Now that you are through with the process your next step is to know exactly where structured settlements have the greatest of impacts in divorce negotiations. Following are some of them:
Martial assets can be evenly segregated: The advantage of such a settlement over divorce is that the financial assets between husband and wife get evenly distributed and there is no room for disputes afterwards. Both are clear about their assets and hence there is a lesser scope of a debate between the two parties.
Child share: The share of child has always been a very debatable affair in cases of divorce and it is only through structured settlement you can expect to have a comparatively smoother ride. This kind of settlement covers almost all attributes related to a child post divorce starting from tax benefits.
You are aware about your savings and earnings: This kind of settlement gives you ample opportunity to know about your savings as well as earnings out of a divorce and it is not at all complicated.
Conclusion
Therefore, as you can see , in today’s age where divorce rates are on the rise, structured settlements are a boon to those couples who are on the verge of separation and don’t know exactly how to streamline things. Following such a settlement scheme not only helps to have a smooth divorce process but also helps you to maintain a healthy relationship with your ex-spouse in future.
Thanks for sharing this advice! I had no idea that structured settlement could be a viable option for divorce payments. That would be particularly great, especially if the marriage lasted for a long term. No one wants to have to pay a lot of money all at once!
Annuity Structured Settlements are agreements that you can make using your insurance, through a third party financial institution where you would agree to pay each year for the rest of their life.
You make a significant point when suggesting people leave no room for dispute afterwards. In many types of negotiations, this type of thinking is needed.