Needs-based Approach To Allocating Debt and Assets
May 10, 2020
The collaborative divorce process has been described as a gentler way of dissolving a marriage.
Difficult financial issues to be resolved include, but are not limited to:
- Division of assets and debts
- Maintenance (aka alimony)
- And if there are children, child support.
In the collaborative process, a needs-based approach is taken in determining how assets and debts will be allocated and whether one spouse will pay maintenance to the other and, if so, how much and for how long.
The needs-based approach allows both spouses to review different financial scenarios together with their attorneys and the other collaborative professionals. Reviewing scenarios means that both the husband and the wife see how different allocations of assets and debts and different maintenance agreements will affect each of them. It also takes tax liabilities into account to help the participants understand what each person’s cash flow will be after payment of their respective expenses and taxes.
The result is decision-making based upon informed negotiations. The goal is to attain an agreement that does not benefit one spouse to the detriment of the other but rather to craft an agreement based upon the needs of the entire family.
Phone: (303) 449-4351