Navigating the legal aspects of a divorce can be both overwhelming and confusing, especially since going through a divorce is often an emotionally challenging experience. However, you have to think clearly and make financial decisions that will impact your quality of life for years to come.
One important distinction is the difference between alimony and property settlement. Knowing this difference and how each one can impact your finances will help you make smart decisions during the divorce process.
Alimony is a support payment paid by one spouse to the other. Usually, alimony only factors into a divorce if one spouse has historically supported the other financially. If both spouses worked throughout the marriage, alimony usually doesn’t factor in unless one spouse had a significantly higher income than the other.
Suppose that your spouse paid the bills while you ran the household throughout your marriage. In such a case, alimony would be a central consideration in your divorce. Alimony can be set for a certain amount of time or permanently. Factors like age, health, earning ability, and the length of the marriage are all considered when alimony payments are determined.
If you qualify for alimony, you might also have the option of choosing between a single lump sum payment or smaller, ongoing payments.
Most assets acquired by either spouse during a divorce are considered joint marital property. For example, one spouse might own a property, and the deed is in their name alone. In that instance, the court will likely determine that the property belongs to both spouses if it was purchased during their marriage.
Property settlement during a divorce is the process of deciding how marital assets are split between spouses. In this context, property refers to things like:
Property settlement can happen either through mediation or in court. If the divorcing spouses can agree on how marital property should be divided in a divorce, mediation is usually the simpler and more cost-effective approach. If spouses can’t agree, they’ll need to go to court for a judge’s ruling on their property settlement.
On the surface, alimony and property settlement cover two different areas of a divorce settlement. Alimony is concerned with how much financial support one spouse owes the other, while property settlement relates to how the spouses should divide up their shared assets.
While these are two separate categories, they are related in an important way. Spouses can use alimony or property to negotiate. For example, a spouse wanting to keep the family home might agree to a much smaller alimony payment or none at all in exchange for a greater portion of the marital property.
Before agreeing to such an arrangement, it’s important to consider the long-term impact on your finances. For example, you might wait to give up alimony in exchange for a home until you can afford the taxes and other living expenses.
Gucciardo Family Law represents clients going through divorce in the greater Detroit metro area. Give us a call today to learn more about how an experienced Detroit divorce attorney can help with your divorce.
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Hey Renee Just wanted to say Happy Birthday. But also -- as my daughter Liz turns 18 tomorrow -- I wanted to say thank you for all of your hard work on the case involving Liz. You fought for Sue and I every step of the way and we never, ever lost a battle with you at our side. While going through essentially two custody battles to get Liz living with us, you made it look easy and you won every round for us with ease. Sue and I have recommended you to so many people that we've lost count. I think Sue will agree with me that you are honestly the best family attorney that anyone could ever hire. We'll both continue recommending you to anyone in need if an all-star. You've been there to read my 5,000-word, long-winded emails, you've been there at every court date, you always were quick to answer every call and showed compassion to Sue and I all the time. Thank you for believing in us and giving us the confidence over the years in my daughter's case, especially when Liz's mother was making life very difficult for us. Liz started at Macomb Community College today and she's doing well. She's working and growing up into a beautiful, mature young lady. I can't thank you enough for being responsible for getting Liz to live with us full time. Sue and I truly believe that Liz living with us saved her from living an enormously difficult life with her mother (Liz now has not seen her mom in over 3 years). We've had a long relationship for 10 years as our friend! Stay in touch on Facebook and I wish you the greatest success in your practice and with your family. Take care and all the best to you!
Tom and Sue Varcie