It seems like financial crises are looming large these days, and many people are unsure how they're going to meet obligations like rent, utility bills, car payments and more over the coming months.
Divorced parents, of course, have an even bigger concern: They need to know what to do if they can't afford their child support next month.
We are living in very uncertain times. Where what seemed sure and certain only a few months ago now appears quite shaky and unsubstantial.
Due to the worldwide pandemic COVID-19, many people who thought that they had no financial hardships are now facing a perilous future. Those who were already in dire financial shape now may be teetering on the brink of catastrophe.
When you and your spouse got married, it was "share and share alike." Well, the halcyon days of your relationship are past and you've developed a creeping intuition that your spouse is not being honest with you about money matters -- probably in preparation for a split.
How do you know if you're just being overly suspicious and paranoid or simply perceptive? Here are some of the signs that your spouse really is hiding assets:
When music icon Prince died, people were shocked that the singer and songwriter didn't leave behind a will. His six siblings stood to inherit roughly $100 million. However, the licensing rights on many of his unpublished works could be worth much more.
Two of those siblings quickly divested themselves of much of their inheritance by selling their rights to the estate to the entertainment company Primary Wave. Since the estate has been held up in probate while various claims against it -- some clearer than others -- are settled, selling their rights may have been the best way they could find to access their inheritance quickly.
The Setting Every Community Up for Retirement Enhancement (SECURE) Act went into effect at the beginning of 2020. Among other things, it changes some of the rules on certain kinds of trusts -- which means that you may need to revise your current estate plans.
In the past, you could direct your retirement accounts into a "stretch" trust after your death that would give your nonspouse beneficiaries (like your minor children) distributions over an extended period of time. That was usually the most favorable way to take advantage of tax deferrals, minimizing how much. Under the SECURE Act, however, your nonspouse beneficiaries only have 10 years from the time of your death to take the entire distribution.
You've probably heard this before: You should have enough money set aside at any given point to cover at least three months of your bills. Six month's worth of income sitting in the bank, of course, would be better.
If you constantly have "too much week left" after your paycheck is gone and nothing more than moths fluttering around your savings account, are you a failure? Absolutely not. You're actually in pretty good company.
Despite the old saying, promises are not meant to be broken -- especially when those promises are part of a contract. But what can you do when someone breaks a contract with your company?
If the breach is serious, or material, you have legal options. Depending on the situation (and the contract), you may be able to cancel the deal -- which, at least, ends any obligation on your part. You may also ask a court to order the other party to compensate you for your losses or even penalize them monetarily. But what if you really want the other party to come through on the deal, and you don't think that mere money will actually compensate you?
Your marriage is unhappy, and you want out. Now, you just need to understand what it takes to make that happen. Part of that process is making certain that you fully recognize the financial consequences of a divorce and are prepared for them.
Here are some of the financial considerations you may need to discuss with an attorney:
Think about why people file for bankruptcy, and what reasons come to mind first? Poor spending habits? Bad investments? Bad business decisions?
These things can and do play a role. But they are not the main reasons why people end up filing. The reality is that it's a bit more innocent than that, and it's something that people cannot really control.
If you're facing a divorce, it's natural to think about your finances. It's expensive to split up and start over.
But just how expensive? According to the latest figures, Michigan's relatively low cost of living (which is 7% lower than the national average) also translates to a lower cost of divorce than in many states. A divorce without minor children will likely cost $12,900. Those with minor children can expect to pay $19,400. That makes divorce in Michigan less costly than in almost half the nation.
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Sheehan & Associates, P.L.C.
1460 Walton Blvd , Suite 102
Rochester Hills,
MI
48309
Toll Free:
877-600-7891
Phone:
248-218-1473
Fax:
248-650-5368
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