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Understand the financial obligations and challenges of a divorce

| Feb 10, 2020 | Family Law |

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:

  1. Your obligation for spousal support or child support. You may have a lot of worries where these issues are concerned, and those worries can be compounded by misinformation or lack of information. Your obligation may not be as unmanageable as you think. Nor is alimony likely to go on forever.
  2. Your right to the marital assets. Michigan is an equitable distribution state, so marital assets are divided up according to what the court finds “fair,” which can be much different than “equal.”
  3. The effect of a prenuptial or postnuptial agreement. If you and your spouse have such an agreement, you should review it carefully before you make the next step. You may have forgotten some of the terms over the years, and that could lead to mistakes.
  4. The tax consequences of your divorce. This isn’t just about your filing status. It also has a lot to do with how you may be taxed on distributions from pension funds, who gets to claim the kids and more. It’s often wise to talk to a financial planner, especially if you have complex holdings and multiple income sources.
  5. The best way to protect your credit. Disentangling yourself financially from your spouse can take a while. You need to know how to best protect your good credit during this time.

If you’re contemplating a divorce, continue reviewing our site for additional information or contact us directly to discuss your options.

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