I reviewed a proposal from my spouse’s attorney and it has a provision that mentions a COLA. What is a COLA? What does it apply to? I am hesitant to agree to this since I don’t understand it.
Cold Over COLA
The short answer would be that COLA stands for Cost of Living Adjustment. If you include this provision, it could be a self-executing clause that means that a payment that you make (or receive) can be adjusted in accordance with the cost of increase living, or it can indicate that you can modify the underlying agreement based upon the need for a COLA.
COLA can also pertain to pension payouts, and may be incorporated into a Qualified Domestic Relations Order (QDRO) so that your pension payments (if applicable) automatically change as the cost of living changes. This is typically three percent (3%) per year.
If for some reason you are not sure that this provision belongs in your agreement and/or donot believe that it benefits you, you may want to seek the advice of counsel. With over 22 years of combined experience, Attorneys Kristen Wolf & Shari-Lynn Cuomo Shore can easily help you negotiate your settlement, show you different financial scenarios, and decide whether or not a COLA provision is best for you.
Call us today, and let us make your matter easier, not harder. Ever argue with a woman? Let Wolf & Shore Law Group go to work for you. Call us at 203.745.3151 or email us at firstname.lastname@example.org.
Very Truly Yours,
Wolf & Shore Law Group