Divorces Up As Economy Recovers; Structures Offer Financial Security for Ex-SpousesA recent article on BusinessWeek.com noted that the number of divorces rose for three straight years to 2.9 million in 2012—the highest since 2009. The U.S. Census Bureau statistics were the result, say experts, of an improving economy. During the recession, many couples simply couldn’t afford to split, especially with their homes valued less than what they paid. Now that the economy is beginning to recover, people are more confident to make life–changing decisions—including divorce.

The recession offers a valuable lesson for divorcing couples—financial security for the recipient spouse can’t be guaranteed when relying solely on stock or real estate investments, a stake in a family business or equity in a home. That’s where a structured divorce settlement comes in.

Divorce settlements It can be used to resolve:
• Division of marital assets
• Financial support for recipient spouse
• Meeting child support payments
• Educational financial needs of children

Advantages of structured divorce settlements:
• Limited funds go farther
• Guaranteed cash flow to recipient spouse regardless of the ups and downs of the economy
• Tax-exempt income to recipient spouse
• Payor spouse pays discounted amount to ex-spouse
• Payor spouse is not responsible for making structured future periodic payments once settlement is finalized (responsibility becomes that of an assignment company, which makes payments from a life insurance annuity)

As with personal injury cases, every divorce is unique. Please feel free to give me a call with questions you have about structured divorce settlements.

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