Assets and liabilities are a significant part of most Michigan divorces. The couple decides that it is time to go their separate ways and then the questions of who gets what and who is responsible for what become crucial. For some, decisions related to property division can become points of contention.
In deciding who gets what, it is first important to have a clear understanding of exactly what the marital assets consist of. The first step in this process is taking an inventory of all assets, their value and their tax status. Then, one will want to have a review of past tax returns and financial statements conducted. This will aid in making sure that there are no assets that one is not aware of. The individual’s attorney can often assist in this process.
In determining which party should receive which assets, it is important to consider assets in the same manner. This is critical when dealing with some assets that may be before tax assets such as retirement accounts and other assets for which taxes have already been paid. Taxes should be considered in this process in order for things to remain equitable.
Along with the asset part of property division, the couple is most likely also responsible for joint credit accounts. While the divorce is being finalized, both parties will want to make sure that these bills are being paid so that their individual credit scores are not adversely affected. Once the Michigan couple decides who is responsible for which bill, the bill should be transferred to that sole individual if possible. Again, experienced legal counsel can help in determining what is best for the individual.
Source: startribune.com, “Don’t let divorce season upend your finances“, Kevin Voigt, April 1, 2017