When it comes to a divorce settlement, there is often way more involved in a division of assets than just a house and banking accounts. And not only is your financial future being determined, but so too are the futures of your children. Before wading into this complex process, it would vital to have some legal as well as financial help. So here are five more financial tips for individuals facing a divorce.
A dead-beat ex is not the only way that your children may go without support payments, or the only reason you might miss out on maintenance. You also need to take financial steps against missing support due to disability or death. You should think about asking your spouse to get disability and life insurance policies so that your kids will still receive
child support, and/or you can still receive maintenance in either event.
Then there are two things that you need to consider when it comes to pension plans. First off, you need to understand any defined benefit plan (DBP), especially its current value. Its future worth is not the only thing to consider. To find out the present worth of a DBP may require the help of an actuary, a financial professional who specializes in determining the worth of insurance, annuity premiums, and more.
Then you need to obtain a Qualified Domestic Relations Order (QDRO) if you want a portion of your ex's pension plan, or your ex's retirement savings accounts. This order will tell the plan administrator to make the payments that a court orders, otherwise the court order means nothing. It does not matter whether you have wait a few years to see payments because of how the plan works, you still need a QDRO so you get the full amount to which you are entitled.
If you are being offered investments instead of other assets, you should really consider (with professional help if possible) the actual likelihood of getting a return on investment. Even though an investment may offer a lot of potential, you really need to assess the inherent risks, and then look at the benefits of more secure assets before you accept a settlement that trades you investments for liquid assets.
Finally, you will need to consider the long-term when it comes to finances, planning for beyond the immediate future. This can be hard when you are the throes of a divorce, but you will need to project to a couple decades in the future. What will your divorce settlement, support payments, retirement accounts, etc. all translate to in ten to twenty years? This is something vital to understand, for which it would be invaluable to have expert help.
Of course, planning for your financial future would mean nothing if you do not end up with what you deserve from a divorce settlement. When your family's future is on the line, you can depend on the Meyers Law Group, P.C. Our Long Island divorce lawyer can help you ensure a strong financial future. Contact us today!