Filing for Divorce? Top 5 Financial Issues to Keep in Mind

Divorce is a major decision – potentially the most important you will ever make. Unlike deciding to get married, you are breaking up a family and people other than you and your spouse are involved. There are also financial issues to consider. A divorce lawyer in Rochester MI can help you evaluate your situation and ensure that your financial interests are taken into account as you embark on your divorce.

Your divorce could be the largest financial transaction you will ever make and you need to understand what the future holds in terms of your finances during and after your divorce.

No matter your situation, there are certain things you need to consider before filing for divorce. Your relationship might be coming to an end, but that doesn’t mean you need to be careless when it comes to money. Here are the top 5 financial issues to keep in mind as you move forward with your divorce:

1. Divorce is Emotional – Your Financial Issues
Should Not Be

There is no denying you will be upset about your divorce, no matter how long-coming it might have been. But this does not mean that your emotions should bleed over into the issues in dispute. Acknowledge your emotions and then move forward with a sensible approach to finances. Working with a professional can help you avoid crucial mistakes.

2. Do not Assume Support is guaranteed – Get Some Kind of Insurance to Back up the Unexpected

In most divorces, one spouse pays alimony and/or child support and the other receives it. This money will likely be crucial not just for sustaining your standard of living after the divorce but also to surviving. You need insurance to cover whatever you are being paid if something should happen. An insurance policy protects you in the event of a death or other event that puts a strain on your support payments.

3. Get Professional Help When Dividing Your Assets

The division of assets is one of the most contentious issues in a divorce. Having a cost-benefit analysis is crucial to helping you avoid problems in the future. Property divisions often look equal but actually not be at all equitable. You need to consider issues like liquidity and how you will manage in the future. A divorce lawyer in Rochester MI can run projections for the assets in question and take a variety of factors into consideration so you have the clearest understanding of a settlement.

4. Don’t Overlook Tax Issues

Keep in mind the disparities in how the IRS treats real estate versus financial assets. Otherwise, you will find an “equal” split is anything but. Also, take into account things like property taxes. If you are paying an exorbitant amount on an asset you received and your former spouse is not, that’s far from equitable.

5. Your Lifestyle is guaranteed to Change

There are very few instances in which divorce does not alter a person’s lifestyle. It is just a fact of life. A divorce lawyer in Rochester MI can help you minimize the effect as much as possible.