Look Into the Future When Negotiating Your Divorce
Key Points
  • Set financial goals to help you transition from a married couple to a single person.
  • Your settlement will impact your future so taking into consideration various aspects such as taxes, alimony, child support, assets and investments as well as retirement and college for the children should be included in all negotiation efforts.
  • When negotiating your divorce settlement it is best to look to the future, not the here-and-now.

A divorce settlement lasts indefinitely, and it can have an impact on the former spouses for the rest of their lives. Obviously, making two households where there was one leaves less for both parties, which requires a change in thinking.

In assessing a divorce settlement a party should try to determine its financial impact down the road. A myriad of factors -- assets and investments, incomes and expenses, inflation, alimony, child support, taxes, retirement plans, medical and health insurance costs, and college for the children -- must be considered.

Divorce compromises the life style of parents and children. A settlement that impoverishes one spouse is likely to go into default in the future. Sometimes it is best to get payments up front if possible, even if the amount is smaller than might otherwise be expected. Adequate insurance protects the divorce settlement. The unexpected or premature death or disability of the payer spouse can upend the finances of the recipient. Unexpected death may result in a loss of alimony, child support, college tuition, or property settlement payments. Life and disability insurance policies guarantee these payments.

The transition from a married couple back to a single person can be eased by sound financial goals and expectations. Financial planning can help people move from a married to single mindset by prioritizing financial goals and developing realistic expectations.

The transition can start with something as simple as changing the beneficiaries of life insurance policies, IRAs, and wills so the estates are conveyed to intended parties -- the children, a new partner, or favorite charity-- not a former spouse. Changes to an estate plan during and after a divorce often require legal and financial advice.

Today computer models produce comprehensive and realistic analyses of a party’s life after divorce. A divorce attorney or financial planner who specializes in divorce can analyze a divorce settlement.

Useful Online Tools

Suggested Reading
Divorce & Money: How to Make the Best Financial Decisions
This book is a practical guide to evaluating assets during divorce. It explains how to determine the real value of marital property including houses, businesses, retirement plans and investments and how to negotiate a settlement that is fair to both sides.

Authors: Violet Woodhouse & Dale Fetherling

Related Article Archives
Financial Planning & Divorce
Property & Debt Division
Property Valuations
Premarital Agreements
Tax Aspects
    All Article Archives

Related Categories
Alimony & Spousal Support
Divorce, Dollars & Debt
Estate Planning & Divorce
Insurance & Divorce
Taxes & Divorce
    All Categories
Related Forums
Financial Aspects
Property & Debt
Spousal Support
Tax Aspects
    All Forums

Resources & Tools

Bookstore Promotion Discount

Start Your Divorce Online Start Your Divorce
Several Options to Get Started Today.
Divorce Tools Online Divorce Tools
Keeping it Simple to Get the Job Done.
Divorce Downloads Download Center
Instantly Download Books, Guides & Forms.
Divorce and Custody Books Discount Books
Over 100 of the Best Divorce & Custody Books.
Negotiate Online Negotiate Online
Settle your Divorce and Save.
Custody and Support Tracking Custody Scheduling
Make Sure You Document Everything.

Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Enter Your Zip Code:


Women's Book ABC’s of Divorce for Women

ABC’s of Divorce for Women

ABC's of Divorce for Women


Men's Book The Survival Manual for Men in Divorce

The Survival Manual for Men in Divorce

The Survival Manual for Men in Divorce


Featured Download Tracing Separate Property Through A Commingled Bank Account

Tracing Separate Property Through A Commingled Bank Account

Tracing Separate Property Through A Commingled Bank Account

Start Reaching Potential Clients Through Divorce Source. Learn More

Guarantee Official PayPal Seal Facebook Twitter Versign Secure Site