When a couple rich in assets but cash poor chooses to divorce, it is not a simple matter to determine how to fairly go about a divorce settlement. In and around Billings, many couples maintain ranches that have been in one's family for some time, making it implausible to physically divide that property. The spouse whose family owns the land may live well because of low overhead costs, but have only modest liquid assets.
In many instances, this necessitates some form of spousal support. Depending on the needs of the receiving spouse and the resources of the paying spouse, a court may choose from a number of different types of support.
Permanent and lump sum support
When the general public thinks of spousal support, it tends to think about permanent support. This is an ongoing obligation by one party to another, which is occasionally subject to review. If one spouse's circumstances change significantly, the order may receive a modification to reflect this change, but otherwise the obligation will continue until one or the other party remarries or passes away.
In some cases, the paying spouse may attempt to push for lump sum support terms, which allows him or her to make a payment to the receiving spouse and forego the ongoing financial burden and the prolonged connection that comes with making payments indefinitely.
It is important to note that, due to recent changes in the tax code, spousal support is no longer deductible from the paying party's tax bill, and the receiving spouse no longer must report spousal support as income. This may significantly affect spousal support negotiations.
Sometimes, the receiving spouse simply needs help getting back on his or her feet and entering the workforce to provide for him- or herself. In instances like this, a judge may order temporary or rehabilitative support that aims to get the receiving spouse to a better position financially, but is not intended to go on indefinitely.
In some cases, the receiving party may even agree to pay back some of the support once he or she receives the necessary education and training needed to find good employment and bring in sufficient income.
If you and your spouse face complicated cash poor divorce, be sure to push for the terms you need to build a new life on the other side this difficult process, keeping your rights and priorities protected along the way.