Divorce can be a messy process most of the time. Emotions are high, and people tend to make rash decisions. However, something that should not be forgotten during the divorce is the child. Regardless of the situation, you should make sure that the child is not negatively affected by the process.
Financial security is one of the most important things to consider during a divorce. Make sure that measures are in place to guarantee their safety. The parent might not be able to gain much from the divorce, but the child can very well still benefit from the arrangement.
If you are considering or are already in the process of a divorce, here are measures you can do to help your child and secure their future.
Consider all the possible expenses
A common problem during divorce is that pride gets in the way of rational thinking. Most people despise the idea of asking for more money from their spouse because they don’t want to appear as if they are reliant on them. However, this can result in child support that is too low to support the child.
If you will be taking sole custody of the child, make sure to calculate your expenses for them carefully. This is especially important for children who have medical conditions or have special needs. Consider possible checkups and maintenance costs that you might be needing. You can consult your lawyer or solicitor to get a better insight into what can be included in child support.
Generally, college funds are not included in child support, but a written college support agreement is also considered. This is something that you want to look into if you want to ensure that your child is secured for the future. However, take note that it has its limitations, which vary on which state you are in.
Set up a trust fund
If your divorce agreements are going smoothly for your partner, you can offer the option of setting up a trust fund. A trust can offer you additional protection from family members in the event of disagreements. It allows you to set a beneficiary that is separate from the assets involved in a divorce. Create a trust fund if the beneficiary is a minor.
With a trust fund, you can establish the conditions of when the trust is to be given. This has no specific age. Once they collect it, the money will be their property, and they can use it to their own discretion. What’s great about trusts is that it is handled by a third-party, separate from the parents. That means you are assured that the money won’t be taken by potentially abusive family members.
One common practice is giving a portion of the amount to the child at one point, usually when they are 25 years old. The rest is then distributed between the ages of 30 and 35.
Settle your will
For those who run their own business or still have a lot of assets after the divorce, they might want to set up a will to ensure that something can still be given to their child. This is best for those with children and spouses that will be dependent on them.
Aside from giving away positions and assets, wills can also establish guardianship. The guardianship of the child after the divorce can be out of your control, but you can decide who can take care of the child if the other parent dies.
A will is best done before or during a divorce. On the off chance that you die during the process, you will still be able to provide something for your child.
Update your life insurance
You might have established your partner as the beneficiary in your life insurance, but this can be changed. Beneficiaries can be changed to the children, while the parent can be the guardian. In some cases, the court can ask the parents to create insurance with the child as a beneficiary if one does not already exist.
This is done either before or after the divorce. However, you can’t change beneficiaries while the divorce is being processed. This can vary per state, but it’s best to hold off changing beneficiaries if you have not already. It can cause complications that might not work in your favor.
Even after a divorce, numerous factors can affect your child. You might have family members who want to take advantage of their finances or a medical emergency. With these actions in place, they are at least protected by the state from such dangers.