Securing Child Support and Equity Distribution Payments in Divorce

Non qualified assignments (sometimes referred to as "non qualified structured settlements") can be a useful vehicle in divorce proceedings. Divorce lawyers and couples in divorce proceedings take note. The use of a non qualified assignment or non qualified structured settlement can provide assurances to the spouse receiving child support obligations, or periodic payment equity distributions, that payments will be received on time every time, thus reducing the time and cost of new court proceedings to resolve issues that may arise. This will be of particular interest where the paying spouse has wildly fluctuating commission or bonus income, lives a long distance away, or in another country. For the paying spouse its the opportunity pay an amount of cash when you presumably have it. For both it's a savings of the future time, expense and administration. Two assignees, BARCO and PRUCO, will take on alimony payments where amounts are fixed.

In a non qualfied assignment or "non qualified structured settlement"  the procedure involves the transfer of obligations to one of the three assignees operating in the arena, who then purchase of a fully customizable annuity as with any structured settlement. There are three non qualified assignment programs currently in operation. BARCO, which purchases annuities from Liberty Life Assurance Company of Boston to meet its obligations, NABCO, which purchases annuities from either Allstate Life Insurance Company or Allstate Life Insurance Company of New York and Pruco Assignment Corporation (PRUCO), which purchases annuties from Prudential Insurance Company of America.

If one spouse sends money to BARCO, NABCO or PRUCO, it's for the purpose of transferring child support obligations or periodic payments of equity distributions. BARCO, NABCO or PRUCO, each a Barbados company, owns the annuity that is chosen to buy to fund the future periodic payments. If for any reason the selected assignee (only NABCO or PRUCO) fails in their obligations, there is Guarantee Letter issued to back up that assignee, from a US company, that goes into effect. In other words the non qualified assignment agreement and guarantee letter protects all parties independent of the annuity contract. Even if the annuity issuer is purchased by another life company, all debts and obligations of the annuity issuer will become that of the new company.

When all is said and done the benefits of assigning to a safe company are better than the alternatives.

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