Child support and alimony (also known as spousal support) are critical aspects of the divorce process, designed to ensure a fair financial balance between both parties. Child support specifically assists with the costs of raising a child, whereas alimony provides financial aid to a lower-earning or non-earning spouse.

Child support and alimony are primarily based on your relative incomes. For instance, if you earn less than your spouse, you are likely to be the recipient of support payments. In assessing these incomes, the court considers not only current earnings but also each party's ability to earn in the future. If you have been out of the workforce for an extended period, for instance, you may require support while you gain the necessary skills or education to earn a comparable income. Similarly, if your spouse has the potential to earn more due to their qualifications or work experience, this may also influence the court's decision.

In situations where either spouse owns a business, determining income can be more complex. The court may assess the business's value, cash flow, and the income it generates for the owner. Professional business valuations might be required in these scenarios.

Life insurance is a vital tool to protect support payments, especially if you depend on this income for your livelihood. In the unfortunate event of your ex-spouse's death, life insurance can ensure that child support or alimony payments continue. The amount of life insurance needed depends on several factors, including the amount and duration of the support payments, the age of the children, and any other financial resources available.

Who pays the premiums for life insurance also needs to be negotiated and will depend on individual circumstances. Sometimes, the individual responsible for making support payments pays the premiums. In other cases, the recipient of the support payments may pay the premiums to ensure that the policy remains in effect.

As you navigate through these financial aspects of divorce, be mindful of any red flags related to the disclosure of income. It's not uncommon for some spouses to attempt to hide income or assets to reduce their support obligations. In such cases, professional assistance from a forensic accountant may be needed to ensure a fair outcome.

Remember, these guidelines can vary significantly based on the specific laws of your state or country. Therefore, it's essential to consult with a legal professional or financial advisor familiar with divorce laws in your area to understand how these concepts apply to your situation.