A
Alimony (Spousal Support/Spousal Maintenance)
Periodic payments from one spouse to the other after divorce to help maintain a similar lifestyle or support needs. Amounts and durations vary widely by jurisdiction and circumstances.
Alternate Payee
The spouse entitled to receive a portion of a retirement plan in divorce via a Qualified Domestic Relations Order (QDRO).
Asset
Anything of value owned by one or both spouses, including real estate, bank accounts, retirement funds, vehicles, personal property, and businesses.
Attorney-Client Relationship
A professional relationship where the attorney provides legal advice and representation. Clients have rights, including clear communication, confidentiality, and competent representation.
B
Balance Sheet
A comprehensive list of all assets and liabilities owned by spouses, used as the starting point for dividing property.
Buyout (Lump Sum Buyout)
An upfront payment by one spouse to the other in exchange for terminating ongoing support obligations.
C
Cash Flow Analysis
A detailed look at income and expenses for each party post-divorce to determine if support payments are necessary.
Child Custody
Legal and physical rights regarding a child’s upbringing. Legal custody relates to decision-making authority; physical custody concerns living arrangements.
Child Support
Payments made by one parent to the other for the financial care of the child, typically including food, shelter, education, and healthcare.
Co-Parenting
A collaborative approach where both parents share responsibility for raising their children after divorce.
Collaborative Law
A divorce process where both spouses and their attorneys commit to resolving issues without going to court, often including mental health and financial professionals.
Contingency Plan
A backup plan in a parenting agreement for emergencies or when both parents are unavailable.
D
Debt (Liability)
Money owed by one or both spouses, including mortgages, credit cards, and loans.
Direct Payment of Expenses
One spouse pays specific expenses (e.g., mortgage, childcare) directly instead of providing cash support.
Discovery
The legal process where parties exchange relevant information and documents.
Discretionary Expenses
Non-essential spending categories like entertainment, travel, and hobbies that can be adjusted based on budget.
E
Emancipation
The point at which a child is legally considered an adult, often ending child support obligations.
Equitable Distribution
A fair (not necessarily equal) division of marital property.
F
Filing for Divorce
The formal process of submitting divorce paperwork to the court to begin the dissolution of marriage.
Fixed Costs
Regular, predictable expenses like rent or mortgage payments, insurance premiums, and utilities.
G
Guardianship
Legal responsibility for a child’s personal and property decisions.
I
Imputed Income
Income the court assigns to a spouse who is unemployed or underemployed, based on earning potential.
Income Tax Implications
Effects of divorce-related payments and asset transfers on individual taxes.
J
Joint Custody
Shared legal or physical custody of a child.
L
Legal Custody
Authority to make decisions about a child’s education, healthcare, and welfare.
Lien
A legal claim on property as security for a debt or obligation.
Life Insurance (to Secure Support)
Insurance required to guarantee financial support continues if the paying spouse dies.
M
Marital Property
Assets and debts acquired during the marriage.
Mediation
A neutral third party facilitates negotiation and helps parties reach agreement.
Modification
A legal change to custody, support, or other orders after divorce due to changed circumstances.
N
Imputed Income
Income the court assigns to a spouse who is unemployed or underemployed, based on earning potential.
Income Tax Implications
Effects of divorce-related payments and asset transfers on individual taxes.
O
Order of Protection
A court order to protect an individual from abuse or harassment.
P
Parenting Plan
A written agreement detailing custody, visitation, decision-making, and communication.
Physical Custody
Where a child lives and spends time.
Property Division
The legal and financial division of assets and debts.
Q
QDRO (Qualified Domestic Relations Order)
A court order dividing retirement benefits without penalties or taxes.
R
Real Property
Real Property
Res Judicata
Legal doctrine preventing re-litigation of issues already decided.
Retirement Accounts
Pensions, 401(k)s, IRAs, and other tax-advantaged retirement savings.
S
Settlement Agreement
A contract outlining how divorce issues are resolved.
Spousal Maintenance
Another term for alimony.
Standard of Living
The lifestyle enjoyed during marriage, often used as a benchmark for support.
T
Tax Deductions
Expenses subtracted from income to reduce tax liability.
Temporary Orders
Short-term court orders issued during divorce proceedings.
V
Variable Expenses
Costs that fluctuate monthly like groceries and utilities.
Visitation
Scheduled parenting time for the non-custodial parent.
W
Waiver
Giving up a legal right, often related to support or property claims.
Z
Zero-Sum Game
A situation where one party’s gain is the other’s loss, relevant in property division.
Important Terms
Real Estate
Includes properties such as primary residences, cabins, additional homes, rental properties, time shares, and land holdings. Key details for each property should include addresses, ownership status, purchase dates, mortgage balances, and estimated market values.
Bank Accounts and Cash Equivalents
Includes properties such as primary residences, cabins, additional homes, rental properties, time shares, and land holdings. Key details for each property should include addresses, ownership status, purchase dates, mortgage balances, and estimated market values.
Debts and Liabilities
Student Loans: Loans used to finance education.
Credit Cards: Loans incurred through Visa, Mastercard, American Express, or Discover.
Medical Debt: Unpaid healthcare bills or medical treatments not fully covered by insurance.
Tax Debt: Unpaid taxes to federal, state, or local governments, including back taxes, penalties, and interest.
Payday Loans: High-interest short-term loans often repaid by the borrower’s next paycheck.
Judgment Debt: Debt resulting from a court ruling, such as damages awarded in a lawsuit.
Debt from Overdrafts: Debt from Overdrafts
Debts to Family or Friends: Informal loans from personal connections without formal agreements.
Store Credit or Retail Financing: Debt incurred through in-house financing programs offered by retailers.
Lease Obligations: Financial obligations from leases for vehicles, real estate, or equipment.
Loans from Retirement Accounts: Loans taken against the balance of retirement accounts like a 401(k).
Consolidation Loans: Loans used to combine multiple debts into a single payment.
Utility Bills in Arrears: Unpaid balances from utility services.
Personal Loans: Unsecured loans used for a variety of purposes.
Lines of Credit: Revolving credit accounts that allow borrowing up to a preset limit.
Investments
Brokerage Account: A standard investment account holding securities like stocks, bonds, or mutual funds.
Individual Stocks: Shares in individual companies such as Apple or Tesla.
Stock Options: Rights to buy or sell stocks at a specific price in the future.
Restricted Stock Units (RSUs): Shares awarded by an employer that vest after meeting specific conditions.
Performance Shares: Employer-granted shares based on company performance.
Mutual Funds: Pooled investments in diversified portfolios.
Exchange-Traded Funds (ETFs): Investments similar to mutual funds but traded on stock exchanges.
Real Estate Investment Trusts (REITs): Investments in income-generating real estate.
Private Equity: Investments in non-publicly traded companies or startups.
Hedge Funds: Advanced investment funds using complex strategies.
Annuities (Non-Qualified): Investment products that provide regular payouts outside of retirement accounts.
Precious Metals: Investments in physical metals like gold or silver.
Commodities: Investments in physical products like oil or wheat.
Cryptocurrency: Digital currencies like Bitcoin or Ethereum.
Art or Collectibles: High-value items like paintings, rare stamps, or antiques.
529 Plan: A tax-advantaged savings account for education expenses.
UTMA Account: A custodial account for a minor, managed by an adult until the child reaches adulthood.