4 Things You Need To Settle In A Divorce Case

© Katarzyna Bialasiewicz

Going through divorce proceedings can be very stressful and emotionally draining for anyone involved. You can hire a divorce lawyer to provide counsel and guide you through the process, while protecting your best interests. Whether it’s a simpler case with few financial assets to consider or a more complex high asset divorce, legal representation and mediation is instrumental for handling decisions judiciously and fairly, with as little conflict and hostile discourse as possible.

Depending on the specifics of your situation and the circumstances around the pending divorce, there will be a division of all assets and liabilities. Issues such as custody and child support payments also come into play when minor-aged dependents are involved. The terms of a divorce have to be agreed upon by both parties and outlined in a legally binding document known as a marriage settlement agreement.

There are four main areas to consider and settle in a divorce agreement:

1.      Division Of Assets

Property can include everything you and your spouse own that has monetary value. Take stock of everything you owned before the marriage and anything that was acquired during to know what you’re entitled to and what you’re unwilling to negotiate over. Even things like family heirlooms or personal effects that belong to you specifically should be accounted for in a settlement. The distribution of assets is not always equitable depending on the circumstances (fair does not always mean equal), but you have a right to your fair share of assets.

The following are all forms of assets to consider that are subject to apportionment.

·         Real estate property

·         Vehicles

·         Household items

·         Life and health policies

·         Social security, alimony and retirement funds

·         Bank accounts

·         Business or education investments

·         Stocks, bonds, mutual funds 

2.      Division Of Debt

Just as with any other decision involved in divorce, debt apportionment can be settled privately or by the court, in which case the outcome can be contingent on local laws regarding divorce. The latter is more time-consuming and will incur more legal fees. Sources of debt that require settlement in divorce include:

·         Credit cards and accounts

·         Personal loans

·         Student loans

·         Mortgages

·         Medical bills

·         Auto payments

Debt can be broken down into separate or joint obligations, depending on whose name is attached and when it was incurred, during or before the marriage. Bankruptcy is another factor that falls in this category, and there can be cases where couples choose to file for bankruptcy to handle combined debt prior to officializing a divorce. 

3.      Custody

If there are children and minor-aged dependents, custody decisions will need to be made. This is one of the most complicated and emotionally charged issues that are addressed in divorce. Ideally, agreements and decisions are made to protect the best interests and well-being of the children, as quickly and civilly as possible. It’s not as cut-and-dry as dividing financial assets and liabilities, and requires a more thoughtful and sensitive approach. Custody arrangements are categorized in three ways (sole, split and shared) and determined by a variety of factors:

·         Age and number of children

·         Parents’ financial security

·         Provision and sustainability of a stable environment

·         Nature of relationship between parents

·         Child’s relationship with each parent

·         Living situation of each parent

·         Special needs of children

·         Convenience factors (for instance proximity to schools)

A custody settlement can be handled in different ways, and parents can decide between themselves how to best approach making these decisions in the most amicable way possible. Custody litigation can be expensive and become contentious, so couples may consider alternatives such as mediation, parenting plans, and informal negotiations.  

4.      Domestic Support Obligations

This would include alimony and child support payments from one spouse to another. You’ll need to come to an agreement on how much will be owed to whom and predetermined structure of payments. This often depends on who the primary provider was in the household during the marriage, who has more financial resources, and how custody of children (if applicable) is settled, privately or in court.  

Conclusion

It’s natural and understandable to want to avoid prolonging the settlement process. Yet with all the key decisions that are made in a divorce settlement, it’s important to not overlook or minimize any decisions that will have a lifelong impact on you and your family’s future. Impulsive actions and snap decisions can be regrettable and damaging. Take into consideration your priorities, and take legal advice to keep things in perspective.

Remember, emotions can impair your ability to be logical and practical about settling disputes and reaching decisions. Being prepared with legal knowledge and understanding your financial situation will facilitate and expedite your divorce case to ensure the best possible outcome for you and anyone else affected by final agreements and arrangements reached.