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How does an asset heavy settlement affect spousal support?
How does an asset heavy settlement affect spousal support?

How does an asset heavy settlement affect spousal support?

On Behalf of | Jun 15, 2020 | Family Law |

As someone going through divorce, it is natural to want to hold on to as many assets as you can in your upcoming settlement. If the settlement requires you to pay alimony to your spouse, it could impact you financially down the road. This is why some people decide to award more assets to a spouse in a settlement. 

Divorce cases take many forms, so what works for one couple may not work for another. However, it is possible you might benefit from awarding more marital assets to your spouse. Forbes explains some reasons why this may be the case. 

More assets may lower support payments 

You might worry that at some point, your current cash flow will diminish. You might lose your job, or your investments may yield fewer returns. You might also manifest health problems that could limit your earning potential. Whatever your concerns, you may want to minimize your support obligations if possible. 

The Forbes article points out that divorce judges do take asset division into consideration while determining how much a spouse should receive in support. By allowing your spouse to take a greater share of the marital assets in your settlement, a judge might decide that your spouse will not require as much in support payments. 

Possible issues with asset heavy settlements 

This approach could present drawbacks, however. It is possible to modify a support obligation in the event you encounter financial hardship or health problems that diminish your ability to generate income. On the other hand, changing a division of assets is far more difficult and may not even be possible. 

An alternative is to include a detailed provision for reevaluating your support obligations. You might tie your income to a specified percentage. If your income amount drops at an amount greater than the percentage, the provision will decrease your support payments. Be prepared for the possibility that your spouse may insist on an increase of support payments if your income should rise according to this formula. 


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