Child Support and Spousal Support in Collaborative Divorce
When there is a transition to two homes, anxiety can be high around the dollars available to cover expenses in both homes. In collaborative divorce, detailed budgets are used to arrive at income allocations which meet the needs of both partners and the children. This is much different than litigation, in which the former spouses fight to get every last penny from one another.
Making Wise Income Allocations
In a Minnesota collaborative divorce, Financial Specialists use three projections to help couples reach agreement on what to do with the income coming in:
• Completion of detailed budgets both for today and for the next several years as future phases of housing may change or as children grow;
• Maximizing after-tax income through tax planning; and
• Using assets and liabilities to support cash flow as needed.
Using these projections, couples are able to focus on the actual facts of their real lives, rather than getting themselves bogged down in “positions” regarding child support or spousal support. After everyone has determined how to maximize net income, decisions are then made as to who will pay for what expenses.
This is vastly different from a conventional court litigation model, in which awards of support may be made from artificial computer formulas and are not based on real needs or expenses. In addition, when court awards of support are made, they typically do not create detailed plans concerning who will pay for what.
Bringing Clarity to Your Situation
Based in Edina and serving the entire state, Collaborative Divorce Minnesota helps people understand non-marital property and how they can save money by using the collaborative process. Call 952-405-2015 or send us a message using the form on our contact page to get in touch with our professionals.