When negotiating a divorce settlement, the term “equitable” does not only mean “equal.” It also means “fair.” The main goal of forging an equitable divorce settlement is to recalibrate both parties as close as possible to the same level financially as they enjoyed while married.
This article will take a close look at some of the ways this is accomplished. We’ll discuss issues involving alimony, child support, and the division of property, all in the context of negotiating a fair settlement agreement.
Spousal Support
Spousal support, in most states, is normally paid for one-half of the period from the date of marriage to the date of separation. This means that if a couple was married for 10 years, spousal support would be paid for five years. The rate would be one that equalized both households. It would be based on the incomes of both parties.
Reimbursement Allowance
If an ex-wife was a homemaker and mother raising children during the time that both parties were together, the wife would have the option of undergoing vocational training. This is done with the goal of reentering the work force. The allowance would normally last for a year or two. It would also cover childcare costs. Upon completion of training and reentry into the job force, the ex-wife’s reimbursement allowance would most likely end.
One Exception
An exception to this would be the wife who put her husband through medical or law school, or any other professional education that led to a higher income level. In such a case, the ex-wife would be reimbursed for the time she was not able to enjoy the new standard of living. Reimbursement is made available to her because she contributed substantially to it.
Child Support
It costs the same amount of money to raise children whether or not both parents are living in the same home. This aspect of a settlement agreement will depend largely upon how much time each party spends with the children. It would also depend upon the income levels of both ex-spouses.
Joint Tenancy Status On Date Of Separation
Dividing up real estate in a divorce largely depends upon the state the divorcing couple lives in. In California, all real estate purchased during the marriage is considered community property whether or not the property is held in joint tenancy. If a wife resided in her husband’s sole residence during the course of the marriage, she will receive a portion of the property’s value when it is sold or rented.
An ex-husband can “buy out” the portion that the ex-wife owns in ether scenario. As an alternative, the property can be sold outright with the proceeds divided according to state laws.
The last variant in the separation of real estate is decided by a judge. If the couple’s children are living in the home and there are enough funds to pay the mortgage payments, a judge may rule that the property not be sold until the children have permanently left home. At that point, the property is sold and the proceeds are divided between the spouses.
Community Property And Separate Property
Community property is normally divided between the divorcing spouses. This includes everything from vacation homes and furniture to small items, such as rice cookers and vacuum cleaners.
Couples should avoid becoming embroiled in arguments over household items. Such arguments can quickly escalate, leading to a court battle over things that are arguably inconsequential. Litigation can cost thousands of dollars, an expense that can be easily avoided by working things out amicably.
Assets And Obligations
All assets, from bank accounts and cars to sports equipment and other high-dollar pieces of property are divided equally. So too are debts owed by both parties. The obligations will be weighed against the ability to pay and the income/support level of each spouse.
Life Insurance And Retirement
Life insurance is negotiable. Depending upon the state, the divorcing spouse may receive life insurance for the amount of time the marriage was in effect.
Retirement benefits go to the ex-spouse according to the number of years that the marriage lasted. In other words, if a couple was married for 20 years, the ex-spouse would be eligible to receive 10 years of the retirement benefits.
The details above should be considered rough guidelines. When it comes to settling divorce cases, nothing is guaranteed. Moreover, the states’ varying laws with regard to property division further complicate matters. If you and your soon-to-be ex-spouse are interested in creating an equitable divorce settlement, it is advisable to speak with a qualified Virginia divorce attorney.