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Five Financial Considerations If You Are Divorcing in Michigan

Posted On: Oct 28, 2013  
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Five Financial Considerations If You Are Divorcing in Michigan

When you file for divorce, there are many concerns swirling through your head, many of which are financial. Sorting through the financial implications of your divorce takes time and patience. A good lawyer can discuss the financial issues that you should consider and help you move on with your life.image

  1. Alimony or spousal support is a hotly contested part of many divorces. Alimony can be paid periodically or as a gross amount (paid in one or several large payments) and is generally intended to help the spouse receiving it obtain the training, education or experience needed to re-enter the workforce. There is no set formula for alimony and courts consider a wide variety of factors when deciding. It is very important that you work closely with your attorney because alimony has important tax consequences.
  2. Child support is based on a set formula that takes into consideration the parents’ net incomes and how they share time with their child. While the formula is the basic method for calculating support, it is possible for the court to deviate from the guidelines by considering a list of factors. These can be used to adjust the amount to more closely fit the needs of your family.
  3. Division of Assets. When you divorce, all of the assets of the marriage are divided by the court. This includes anything bought, earned or acquired during the marriage. The court divides assets in a way that is fair, but not necessarily equal. Asset division is complicated because it includes everything from your home and retirement assets down to each teaspoon in the home.
  4. Division of Debts. Just as the assets of the marriage must be divided, so must the debts. Debts are divided in the same way as assets and include things like mortgages, car loans, credit cards and more. A fair division of debt allows you to be responsible only for a portion of the marital debt so you can move forward with your financial life.
  5. Divorce Costs. When there is a limited amount of assets, it makes sense to do what you can to protect them. The costs of hiring attorneys and going through a trial can eat up a large portion of your marital assets. You and your spouse can save thousands of dollars on your divorce costs by using mediation, a process in which a trained mediator helps you reach a settlement on your own, without costly discovery, trial preparation, and litigation.

When you are considering divorce, make an appointment with Paul J. Tafelski, P.C. Our office is ready to help you manage the financial implications of your divorce so that you can move forward with confidence.

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