Divorce Structured Settlements

Divorce Structured Settlements
Divorce structured settlements could be looked at as alimony insurance. A divorce structured settlement can provide assurance to the ex-spouse receiving child support obligations, alimony or division of marital property in the form of periodic payments that will be received On Time Every Time®. This reduces the time, cost and emotional energy involved in new court proceedings to resolve disputes that may otherwise arise.  This will be of particular interest where the paying spouse has wildly fluctuating commission or bonus income, lives a long distance away, or in another country.
Click To Call
Where Divorce Structured Settlements Work Best
  • A divorce structured settlement works best if there is enough liquidity in divisible assets and/or the Paying Spouse has sufficient resources  to fund a future payment stream for some element of the divorce today;
  • Where the amount of  future payments can be quantified at the time of settlement.  One cannot for example quote a divorce structured settlement for  a payment that may vary from one payment to the next, or may otherwise vary over time; 
  • AND Where the Recipient Spouse would like the security of core income stability that is unaffected by the Paying Spouse's employment status, solvency or income reporting integrity.
  • Where the Recipient Spouse would like the security of core income stability that is  unaffected by the death of the Paying Spouse;
  • Where the Paying Spouse and the Recipient Spouse want to keep things simple.  
Summary of Benefits of Divorce Structured Settlements

Advantages to Receiving Spouse:
Security--no fear of broken promises of ex-spouse, or the attendant costs to enforce decree and alimony payments are: 
  • contractually guaranteed and funded by an A.M. Best A (Excellent) rated life insurer which in turn is backed by Liberty Mutual, a company in business more than a century, 4th largest property casualty insurer in the USA and 76th in the Fortune 500.
  • Flexible plan designs and security allow for long term pay outs and multiple payment streams 
  • The annuity that funds the obligation to pay the matrimonial structured settlement may be creditor proof (depends on your state) 
  • Obligation assigned through non qualified assignment process is not subject to future general creditors of ex spouse
Advantages to Paying Spouse:
  • Potential for savings in discounted cost of payments 
  • Get the obligation to pay off the books, through non qualified assignment process 
  • No lien on assets from promissory notes
Further Reading:
Share by: