It is not uncommon for a divorce to impact one's professional life. Those that hold executive and employee positions alike can take proactive steps to reduce the impact the divorce will have on their career.
Three tips that apply to most professional situations include:
Business owners must tread carefully when it comes to the division of assets during divorce. It is very likely that some or all the business assets qualify as marital property. As such, the business could be subject to division.
When does a business or business interest qualify as marital property? Generally, state law considers businesses that begin during the marriage as marital property.
Divorce is not something to rush into. However, couples that have decided that divorce is in their best interest may be wise to move forward with proceeding sooner rather than later.
Why finalize a divorce in 2018? The short answer for why a couple should seriously consider to finalize a divorce this year? Taxes. The Tax Cuts and Jobs Act of 2017 (TCJA) has led to a number of changes to the tax code.
There are many parents in Michigan who are preparing to navigate their first summer following divorce. Some will likely encounter several challenges regarding child custody arrangements, especially if both parents have full-time jobs. However, even married parents sometimes face similar issues, and it doesn't necessarily have to mean that summer will be more stress than fun.
When kids see their parents' willingness to cooperate for their sakes, they often try to emulate positive attitudes as well. If everyone can get on the same page as far what the family's goals are and which parent will have the kids at which times during summer break, each person may feel inspired to chip in and help everyone move forward. Realizing that life is not perfect, however, it's always a good idea to know where to seek support if a custody problem or other post-divorce legal issue arises.
Although an emotional process, a logical outlook while going through the minutiae of the divorce can help reduce the risk of any surprises once the divorce is finalized.
How to put the emotion aside? Avoid the mistakes of others.
One way to approach the process logically is to learn from the mistakes of others. Three common divorce errors to avoid include:
You and your spouse intended to grow old together, and your financial preparation reflects that. Now that you are divorcing, you are prepared to divide your property, but you may not know what will happen to your retirement accounts.
Divorcing couples usually have a lot of questions about the future of their retirement accounts. Are retirement accounts equally split between spouses? Does the working spouse retain more, or all, of the retirement benefits? How will the non-working spouse find financial security?
With engagement season behind us and wedding season in full swing, many couples are in the throes of wedding plans. With all the bustle of securing a venue, finding a good caterer, picking the perfect dress or tux, and dealing with the million other details of planning a wedding, a prenuptial agreement may be your last priority.
Maybe your fiancé(e) or future in-laws brought up the topic, putting a damper on all those wedding plans. Do they not trust you or believe this marriage will work?
When high net worth couples in Michigan decide to file for a divorce, one spouse may go to great lengths to conceal some assets. This is often done because one spouse feels specific assets belong to him or her, and should not form part of the property distribution process. In some cases, secret financial activities, bank accounts and investments were concealed throughout the marriage. In any divorce, both spouses have the right to a fair settlement.
A spouse who suspects this may be happening to them, may want to learn where to look for hidden assets. Statements of checking and savings accounts along with canceled checks might reveal hidden investment properties or dividend-producing investments. Studying the tax returns of at least five years may show income inconsistencies, real estate holdings, partnerships and trusts. Furthermore, records about loan or mortgage applications are kept at the courthouse, including a list of assets and their values, and the tax assessor of the county will have records of properties and their assessed values.
Navigating the divorce process in Michigan or another state typically involves several types of challenges, including negotiating terms for new parenting plans (in cases that apply) as well as property division issues and/or spousal support. When existing assets are of higher-than-average value, things can get complicated. This is known as a high asset divorce; it is also the type of divorce where most people choose to seek experienced legal support.
Researching what types of options are available ahead of time is always better than simply showing up in court hoping to obtain a satisfactory outcome. Informed decisions and purposeful actions are keys to protecting one's interests and rights in a high asset divorce. Such divorces often carry business or tax implications. Involved parties may also face challenges regarding various domestic or off-shore bank accounts, retirement funds or real estate issues.
Any marital asset is generally subject to division during divorce. If one spouse is a business owner, this can mean the business is subject to division in the event of a divorce.
Can a business owner protect the business? Entrepreneurs can take proactive steps to better ensure the business survives the divorce. Four examples include:
The Law Firm of Hauer & Snover
30100 Telegraph Road, Suite 221
Bingham Farms,
MI
48025
Telephone:
248-258-0800
Fax:
248-258-2750
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