Divvying Up Assets

• One of the major financial issues involved with a divorce is the splitting of the couple's assets. Marriage can be financially advantageous as it allows two people to pool assets, but in divorce those assets are divided up. Homes, cars and bank accounts must all be split between the spouses. In many marriages, one partner earns significantly more than the other. Even if the breadwinner paid for the majority of the couple's assets, the other partner could end up with the home, car or custody of children.
  
  

Alimony

• Alimony is money that must be paid to a spouse after divorce. During marriage, one partner may be the main income earner while the other may take care of the kids. Both are important jobs, but a job that brings in income is necessary to maintain a certain standard of living. After divorce, partners who were not the breadwinner may not be able to maintain the same standard of living they grew accustomed to in marriage. Alimony helps support spouses with lower income potential after divorce.
  
  

Child Support

• Child support is money that must be paid to the partner who gets custody of the children. For instance, if the wife is granted custody of the children, the husband will likely be require to pay child support for each child until they reach age 18. Child support is not tax deductible for the payer and does not count as taxable income for the partner who receives it.
  
  

Prenuptial Agreements

• Prenuptial agreements are legal contracts a couple signs before getting married that spells out how certain assets will be divided in the event of divorce. A prenuptial agreement is a way for a person to protect his assets from the divorce. For instance, two movie stars who want to get married may sign a prenuptial agreement so that they can each keep their own properties and assets instead of going through a complicated settlement in the event of divorce.
  
  

Social Security

• Social Security income is earned by contributing into the Social Security system throughout your working life. According to the U.S. Social Security Administration, "if you are divorced after at least 10 years of marriage, you can collect retirement benefits on your former spouse's Social Security record if you are at least age 62 and if your former spouse is entitled to or receiving benefits." If you remarry, however, you are typically not eligible to collect benefits based on a former spouse's work record unless the second marriage also ends.