The Law Firm of Hauer & SnoverOakland County Family Law Lawyer | Bloomfield Hills Divorce Attorney | Birmingham MI Child Custody2024-03-20T08:38:56Zhttps://www.hauersnover.com/feed/atom/WordPress/wp-content/uploads/sites/1601211/2020/09/apple-touch-icon-75x75.pngOn Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478542024-03-15T08:39:28Z2024-03-20T08:38:56ZReview your situation
The first step in protecting your money is to take a good, hard look at your current financial status. Gather all related documents, including bank statements, investment accounts, debts and assets in one place. Then, read these reports with a fine-toothed comb. Examining this raft of data should give a renewed perspective that facilitates informed decisions.
Create a budget
Divorce leads to significant changes in financial outlook. Designing a budget is therefore necessary. Start by listing income sources and monthly expenses. Remember to include potential costs that may arise post-divorce, such as those from moving. This will help avoid financial strain and ensure enough funds are available to cover living expenses.
Divide finances
Once the decision to divorce is official, begin separating monies. Open an individual bank account and transfer your funds over. Segregating finances reduces complications and helps both parties manage their riches independently.
Monitor your credit
Your credit score can significantly impact your life, so give it extra attention. Regularly check your credit report for unusual activity or inaccuracies. If you notice unauthorized debts or errors, inform the rating agencies immediately so they can issue a correction.
Plan for the future
Consider long-term financial goals and how you can achieve them. This might involve adjusting your savings targets, investing in your education for better job opportunities or revising your retirement objectives. Thinking ahead ensures you do not just survive post-divorce but thrive.
Divorce brings many challenges, including financial hurdles. The good news is you can set yourself up for an after-marriage experience that exceeds anything you or your former spouse are likely to imagine.]]>On Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478532024-02-29T05:20:50Z2024-03-06T05:20:34ZBusiness assets
One strategy your spouse might employ is hiding assets within their business ventures. This could involve undervaluing the business, overstating expenses or funneling funds into dummy corporations. By manipulating financial records, they may obscure the true value of their business interests, thereby reducing the marital assets subject to division.
Offshore accounts
Offshore accounts present another avenue for hiding assets from scrutiny. Your spouse might transfer funds to overseas accounts in jurisdictions with strict banking secrecy laws, making it challenging for you to track or access these assets. Offshore entities can serve as a means to conceal wealth and evade detection during divorce proceedings.
Real estate investments
Real estate can be a sneaky way for your spouse to hide assets. They might give properties to family or friends, making it look like they do not own them anymore. They could also say the properties are worth less than they are or put fake debts on them, making it seem like they are not valuable when looked at on official papers.
Valuables and collectibles
Valuables such as artwork, jewelry or collectibles are tangible assets that can be easily hidden or undervalued. Your spouse might underreport the value of these items or transfer ownership to third parties to keep them out of the marital estate. If you do not examine these assets closely, they might go unnoticed during the divorce.
By understanding the common avenues used to hide assets, you can better protect your interests and ensure a fair division of property.]]>On Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478522024-02-19T07:16:29Z2024-02-22T07:16:17ZNot keeping good financial records
Information and evidence are powerful resources during any legal proceeding. Therefore, not gathering and organizing financial records promptly when divorce is on the horizon can lead to complications and disputes.
Without clear records, a person has a harder time establishing ownership and asset value. As a result, the court could mandate an inequitable distribution. Waiting to organize finances will likely also prolong the divorce proceedings, increasing stress and costs.
Following the legal and financial advice of friends and family
A person’s loved ones typically want to help during a difficult time. They may have even experienced a divorce themselves. However, they will likely not understand the finer points of Michigan divorce law and how recent legal developments apply to a current situation.
Following misguided advice can jeopardize one’s financial interests or legal rights. Plus, sharing sensitive information with others could escalate conflicts and strain progress during proceedings.
Ignoring tax consequences
Not addressing tax consequences can result in unexpected financial burdens. For example, a person could suffer significant losses in the form of capital gains taxes or other levies, diminishing the overall value of the assets.
Furthermore, overlooking tax consequences could lead to legal issues in the future, such as audits or penalties from the authorities. Properly accounting for tax implications ensures a more equitable distribution of assets and helps both parties avoid potential financial setbacks post-divorce.
Divorce is rarely easy, but it does not have to be unnecessarily difficult. By sidestepping common mistakes, spouses can potentially reduce the pain and frustration of a high-asset divorce.]]>On Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478512024-02-02T06:10:53Z2024-02-07T06:10:32ZGeneral rule
In Michigan, the court primarily focuses on achieving a fair division of marital property rather than directly redistributing one spouse's separate property to the other. Marital property includes assets acquired during the marriage, and the court aims to divide this fairly, considering factors such as each spouse's contributions to the marriage, the length of the marriage, and their respective needs.
Separate property typically remains with the spouse who owns it. The exception is when it commingles with marital assets.
Commingling situations
Commingling occurs when separate property and marital property mix. When this happens, it can make it challenging to distinguish one from the other. In such cases, the court may need to carefully examine the nature and origin of the property to make equitable decisions. Michigan law states that if a spouse can prove they assisted with the acquisition, improvement or maintenance of a separate asset, the court can divide it or award it to the other spouse.
Divorce courts in Michigan do not typically award one spouse's separate property to the other directly. However, the distinction between separate and marital property can become murky. When this happens, it may require a judge to decide the actual ownership of an asset, which might lead to the division of separate property.]]>On Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478502024-01-23T10:00:58Z2024-01-26T10:00:12ZSignificant financial changes
A substantial shift in the financial landscape is a valid reason to request an alimony modification. High earners may face income fluctuations due to factors like job loss, salary cuts or unforeseen economic challenges.
The reverse is also true. The payor may get a substantial raise or see tremendous earnings in the stock market. Whether you request an increase or decrease, you will need to prove a significant change in financial circumstances when seeking modification.
Recipient's enhanced financial status
If the alimony recipient achieves financial independence or experiences an uplift in their financial situation, it may justify a decrease in alimony. Michigan courts consider the evolving financial status of the recipient to ensure ongoing support aligns with fairness and necessity.
Retirement
Approaching retirement can warrant an alimony adjustment. The prospect of reduced earnings justifies seeking modification to reflect the changed financial circumstances during this phase of life.
Cohabitation impact
Changes in living arrangements, especially cohabitation with a new partner, may influence the financial needs of the alimony recipient. High earners might request a decrease, arguing that shared living expenses diminish the recipient's reliance on alimony.
Duration of alimony
Michigan often outlines a predetermined duration for alimony awards. Either spouse may seek a change based on the end of the agreed-upon alimony term.
Health-related changes
Health-related issues impacting the paying spouse's earning capacity are valid grounds for an alimony adjustment. Those facing health challenges that hinder their ability to maintain previous income levels may seek modification to align with their diminished earning capacity.
Initial alimony agreement
Before requesting an alimony adjustment, refer to your legal paperwork outlining factors specific to your situation.
You can ask courts to modify the initial terms, but you will need to present a compelling case for it to be successful.]]>On Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478492024-01-09T07:27:22Z2024-01-12T07:26:50ZFinancial division and asset allocation
A key factor influencing the standard of living after a gray divorce is the division of financial assets. Couples often accumulate joint assets throughout a long marriage. Such assets might include homes, retirement accounts and investments. The process of dividing these assets impacts the financial well-being of both parties. Decisions regarding property division and asset allocation can shape the standard of living each party can maintain post-divorce.
Income and employment challenges
Gray divorce may also bring forth challenges related to income and employment. This may be especially true for those who may have left the workforce or reduced working hours during the marriage. For women, in particular, who may have taken on more traditional roles in caregiving or homemaking, reentering the workforce later in life can be tough. The shift in financial dynamics and potential income disparities can influence the standard of living for both parties in a divorce.
Retirement and Social Security considerations
Gray divorce may also impact retirement plans and Social Security benefits. The division of retirement accounts and pensions, for example, can have lasting financial consequences. For many, the adjustment to a new financial reality in retirement requires major lifestyle changes.
Kiplinger notes that women over 50 watch their standard of living fall by 45% when their marriages end. Men, on the other hand, see theirs decline by 21%. As couples navigate the complexities of late-stage divorce, understanding these financial implications helps them make informed decisions and plan for a stable financial life without their partners.]]>On Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478482023-12-26T09:54:54Z2023-12-29T09:54:27ZFull disclosure of assets
A fair prenuptial agreement requires complete transparency about each party's assets and debts. This ensures that both parties base their decisions on accurate and comprehensive financial information.
Protection of individual interests
The agreement should protect the individual interests of both parties. This includes considerations for future earnings, inheritances and personal investments.
Consideration of future changes
Life brings changes such as parenthood, career shifts or health issues. A fair prenuptial agreement should account for these potential changes and adapt accordingly. It is also important to update the prenuptial agreement when those changes happen, to ensure that the agreement remains relevant and fair.
Fair and equitable terms
The terms of the agreement should not overly favor one party. They should be equitable, taking into account each person's financial situation and contributions to the marriage.
Reasonable provisions
Provisions for spousal support and asset division should be reasonable and not punitive. Unfair or extreme conditions may lead to one party contesting the agreement.
Remember, a prenuptial agreement is more than a legal document; it is a foundation for mutual understanding and respect in your marriage.]]>On Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478472023-12-14T07:42:01Z2023-12-19T07:41:27ZDivision of assets
When high-net-worth couples decide to part ways, the division of assets is an important aspect. Michigan law stipulates equitable distribution, but this does not necessarily mean a 50/50 split. The manner in which the division of assets occurs can have direct tax implications. For instance, selling a property may trigger capital gains taxes, impacting the overall financial outcome for both parties.
Alimony
Alimony is another area where taxes come into play. In Michigan, the party paying alimony can deduct these payments from their taxable income, providing potential relief. On the flip side, the recipient must report alimony as income, subjecting it to taxation. Negotiating alimony terms becomes a delicate balance, considering the tax consequences for both parties.
Retirement accounts
High-asset divorces often involve the division of retirement accounts, such as 401(k)s and IRAs. The transfer of these assets requires careful consideration to minimize tax liabilities. A Qualified Domestic Relations Order may be necessary to ensure the tax-efficient distribution of retirement funds, avoiding potential penalties and preserving long-term financial well-being.
While Oakland County had a relatively low divorce rate of 3.7 per 1,000 population compared to other Michigan counties, many couples in the area still find dissolving a marriage a solid option. When the divorce involves high assets, it can add complications, including potential tax implications.]]>On Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478452023-11-28T05:42:29Z2023-12-02T05:41:48ZMaintaining consistency
Providing a stable environment for the child can be a compelling reason to seek sole custody. This arrangement eliminates disruptions caused by frequent transitions between households, which sometimes impact emotional well-being.
Providing safety
Sole custody is often a priority when a parent has concerns about the other parent's ability to provide a safe environment. This concern may stem from issues such as substance abuse, domestic violence or neglect.
Addressing geographic considerations
If one parent plans to relocate for career or personal reasons, the other may want to seek sole custody. You may feel it is in the child's best interest to maintain continuity in education, social relationships and community ties.
Considering the child's wishes
As children mature, their preferences come into consideration when determining custody arrangements. If a child expresses a strong desire to live primarily with one parent, the court may take these wishes into account when deciding on custody.
Avoiding coparenting conflicts
In a high-conflict coparenting situation, sole custody can reduce the negative impact of discord on your child. This approach can minimize disputes and create a harmonious, less contentious environment.
Almost one-fourth of American children live with just one parent. As parents navigate these considerations, they should strive to foster the child's well-being, growth and happiness.]]>On Behalf of The Law Firm of Hauer & Snoverhttps://www.hauersnover.com/?p=478442023-11-09T09:25:16Z2023-11-14T09:24:41ZValidity and enforceability
The court will only follow a prenup for property division when the agreement meets validity standards. In Michigan, both parties must provide full financial disclosure and execute the agreement willingly without undue pressure.
To be enforceable, the prenuptial agreement must meet legal standards and not be unconscionable. The court may not uphold an agreement that is unfair or one-sided.
Separate vs. marital property
The state follows an equitable distribution system when dividing property in divorce. The court aims to divide shared marital property fairly, but not necessarily equally.
A valid prenuptial agreement can modify these default rules. Instead, couples can choose how to divide their property according to the terms set out in their prenuptial agreement.
Couples commonly create these agreements to protect separate property. Under state law, separate property includes assets owned by one spouse before marriage or received through inheritance or gifts during the marriage.
A prenup can ensure that such property remains with the original owner in case of divorce. It can also establish other assets as separate property.
Couples who create prenups can define their own property division terms and protect their assets, as long as the contract meets legal standards. According to Newsweek, 35% of single survey respondents said they would likely create a prenup before getting married.]]>