When people in Michigan file for divorce, they may not realize that there will be a host of challenging choices and decisions to be made. Adequate preparation before entering into property division negotiations is necessary in pursuing post-divorce financial stability. Without professional guidance, detrimental errors may be made.
One mistake often made is a spouse choosing to keep the family home that he or she cannot afford. Many may not realize that qualification for a new mortgage is not likely before receiving alimony for a period of six months. It is also necessary to budget for the anticipated post-divorce income and lifestyle changes might have to be made. Other important steps include closing joint loan and credit card accounts, changing estate plans and beneficiaries where necessary, and getting guidance with executing a Qualified Domestic Relations Order.
Another consideration involves the fact that different assets may seem to hold similar value, but they may not have the same worth. Furthermore, considering tax implications of each decision is equally important, as is not forgetting about decisions related to the division of tax refunds. It may also be wise to take out disability and life insurance to protect child and spousal support. Couples who have joint rewards, such as hotel point and miles, must remember to include those in their negotiations.
These are but some of the financial matters often left unaddressed in property division negotiations. However, if an experienced divorce attorney is present during negotiations, his or her guidance and support may help to avoid errors and omissions. A Michigan lawyer may also have additional professional resources such as financial, tax and real estate advisers to provide further guidance.
Source: bdfllc.com, “Top Financial Mistakes Divorcees Make”, Accessed on Dec. 22, 2017