Ending a years-long marriage can undoubtedly be a challenging and strenuous process. Those in Michigan who are preparing for a divorce often encounter difficult scenarios and may have to make decisions that could impact their life for years. When it comes to the financial side of divorce, it is perfectly normal to feel overwhelmed or even intimidated. Here are a couple of financial mistakes that people often make amid divorce.
Keeping the marital home
It is often tempting to want to keep the home in a divorce. The home may hold sentimental value as well as monetary value. But it is important to examine the situation and determine if keeping the home is a good financial decision. For instance, the mortgage may not be affordable, or the taxes and upkeep on the home may not be feasible with a single income.
Forgetting to update beneficiaries
Once the divorce is final, it is crucial to take time to review insurance policies, retirement accounts and annuities. Examine these important accounts and policies and confirm that they have the appropriate beneficiary designations on them. While Michigan law rejects as invalid beneficiary designations naming a former spouse that remains after a divorce is granted, it is best to ensure that savings, assets and benefits will go to the intended people.
Getting through a divorce
Divorce is not only a life-changing event, it is a very emotional experience. Making financial and life-altering decisions under the weight of these emotions can be difficult at best. Those in Michigan who are facing divorce or currently going through it might find it beneficial to consult with a knowledgeable legal professional for guidance. An experienced family law attorney can help to create a plan that will safeguard the client’s financial well-being and personal interests during divorce proceedings.