Using Structured Settlement Annuities in divorce negotiations is not the same as purchasing traditional annuities.

Often times, in divorces, the need arises for a spouse to have income for a period of time or in lump sums for anticipated needs. However, these income needs are limited by design and often clouded by relying on a "promise to pay" by an ex-spouse who can die, become disabled, lose a job or business, or move away with a new spouse. In addition the "ex" may not want to continue contact and a long obligation to someone they want "rid of", nor do they want a lien on assets.

Structured settlement annuities can be a useful tool in negotiating property division or paying child support in divorces. If negotiated and included in the settlement and divorce decree, payments can provide short term periodic payments, lifetime income, college funds, retirement funding in a lump sum or in lifetime payments, or any other needs to be met in future dollars.

These are not traditional annuities which are limited in payment options, but negotiated periodic payments for "division of property" and "child support."

The advantage of using structured settlement annuities in these matters are as follows:

Advantages to Receiver:

Security — no fear of broken promises of ex-spouse
Payments are:

  • Contractually guaranteed by one of the largest insurance companies (no market risk)
  • Flexible and allow for long term payouts

  • The annuity is "creditor proof" by Texas law

Advantages to Payee:

  • Potential for savings in discounted cost of payments
  • Ends obligation and contact with ex-spouse (clean break)
  • No lien on assets from promissory notes