When a couple decides to part ways, both parties are often eager to complete the proceedings as soon as possible. However, it’s important that the couple seeking legal separation should settle financial matters, particularly those pertaining to alimony and other support issues before finalizing the divorce.
Our St. Louis Family Law Attorney explains that getting a divorce while there are financial matters to decide is known as “bifurcation.” Bifurcation can cause a number of different problems, especially if one of the spouses dies or remarries before all issues are settled. In this post, we will discuss why it is important to decide the financial matters before finalizing the divorce.
Decide on Finances and Alimony before Finalizing a Divorce
While most couples decide upon the alimony before finalizing a divorce, they often do not consider what would happen if the spouse who is in charge of paying support dies first, and leaves the surviving ex-spouse in financial trouble.
Each state has different laws governing divorce and associated financial matters, and an experienced St. Louis divorce lawyer can provide detailed legal counsel.
But generally speaking, when a spouse is paying alimony, the legal system can require the person to provide security to protect the ex-spouse in case the paying spouse dies before the receiving spouse. This can be done in two ways: (1) by putting up money or property, or (2) by purchasing a life insurance policy with the ex-spouse as beneficiary. This ensures that in event of paying spouse’s death, the receiving spouse remains financially secure.
The key point to bear in mind is these details should be decided upon before the divorce is finalized.
What if an ex-spouse remarries
If one of the spouses is keen to remarry, it becomes even more important to resolve all financial matters beforehand. It may save a lot of time, effort, and possible complications in the future.
If there is a life insurance policy that provides backup for alimony, the receiving spouse should make sure that he/she understands the terms of the insurance policy and is named the beneficiary of the policy for as long as he/she is entitled to receive alimony. This ensures that a remarriage does not affect the alimony. It also gives peace of mind to both the parties, who no longer have to struggle with any financial contention later on.
It’s extremely important to settle all financial issues, such as alimony, beforehand as it can prove beneficial in the long term.
If you line in St. Louis and want to protect your legal and financial interests, you should seek help from an experienced St. Louis Divorce Attorney. A lawyer that specializes in family law and divorce can offer valuable guidance through all legal proceedings and will ensure that your interests are protected.