5 Financial Items Often Overlooked In Divorce Agreements
As you plan a satisfactory end to your marriage and the beginning of your next chapter, knowing what to address in the divorce agreement is key to success. While some financial elements — such as the amount and length of alimony — are a hot topic of conversation, other items can easily be forgotten. But all of them contribute to your financial welfare for many years to come.
So, what are some of the less well-known items that should be in your divorce agreement? Here are a few.
1. College Expenses
States vary on the subject of how long parents can be made to pay child support. Some states end all child support requirements at the age of majority while others allow it to continue through college. Whether or not your state will mandate child support for college, address how it will be paid for during the divorce. Failure to touch on this element now will make it harder to get financial assistance for your children later.
2. Sale of the Home
If you both agree to sell the marital home and split the proceeds in some way, agree on how it will be sold. Determine who will take point on finding an agent, determining the sale time frame, and showing the house. Include wording about what the sale price will be and what price range you're willing to accept.
3. Your Education
If you have been primarily a stay-at-home spouse or supported the other spouse's business, you may need to get your skill and education levels up to date. If so, the spouse who was the primary earner should often have to contribute toward this cost. Before finalizing the divorce agreement, price out what education you may need to complete so you can agree on any spousal contributions.
4. Insurance
Insurance can get expensive. Who will pay for various necessary insurance items for you and any children? Where will that insurance coverage come from? Consider the costs and availability of health insurance for all members of the family through various means, determining how much each spouse should have to cover or contribute. Also, don't forget life insurance, insurance on the marital home, coverage for teen drivers, or long-term care insurance needs.
5. Debt Loads
Be specific about amounts involved in marital debt — or you could end up with an unwelcome surprise. Your state will provide rules for the distribution of debt responsibility, but you need to be clear and specific about debtors and exact amounts each person is liable for. Run credit reports and go through paperwork at home (if possible) to make sure you've located and accounted for all debt before signing any agreement.
Have you thought about these overlooked financial matters during your divorce? If not, a good divorce attorney can help ensure that nothing gets forgotten or underestimated. The investment of time and energy now will help keep you in a stable financial situation for the rest of your new life.
A website like http://gomezmaylaw.com/ can help you with your divorce planning.
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