Many Michigan couples are, at first, surprised, disappointed and sad when they realize their marriages are headed for divorce. With a high-asset divorce, in particular, there are often many financially-related issues that must be resolved before spouses can part ways and move on toward new lifestyles. It’s understandable, especially in situations where a communication breakdown has occurred or a spouse is acting with contention, that problems over money might arise.
Starting out ahead of the game by educating oneself regarding assets and liabilities is typically a good idea. It’s difficult to negotiate and make informed decisions if one is not even aware of what is owned and what is owed. Reviewing tax laws pertaining to potential future taxation of assets and/or capital gains or income taxes is also crucial for those worried about tax repercussions in divorce.
Preparing for financial adjustments alongside lifestyle changes may help divorcing spouses avoid fiscal disaster. While it might be tempting to run up an enormous credit card bill to celebrate one’s new freedom, others who have done so have wound up facing even more problems in the long run. Carefully reviewing credit card statements and minimizing spending is most likely a better idea.
If one has been dependent on a former spouse to handle all bill paying and financial accounts during marriage, divorce might be the time to regain one’s independence in these areas. A financially stable future is typically more possible for those who have a stronghold on their own finances. A high-asset divorce does not necessarily have to mean a long drawn out court battle. With experienced guidance from a Michigan family law attorney and peaceable negotiations, it may be quite possible to keep one’s feet on solid financial ground.
Source: Forbes, “How To Succeed Financially During And After A Divorce“, Mark Avallone, Jan. 26, 2017