Three Important Financial Considerations to Remember in Your Farmington Hills Divorce

 Posted on March 23, 2022 in Divorce

A divorce will likely have a major impact on many areas of your life. One of the most important and complex of these areas is your finances. While certain expenses cannot be avoided, failing to act carefully during your divorce can wreak havoc on your finances not only while the divorce is ongoing, but far into the future as well. With the help of an experienced Michigan divorce attorney, you can get advice and perspective to guide you so you can avoid common mistakes and remember important details. Here are three important financial considerations to remember during your divorce. 

Remember Your Taxes 

Certain financial arrangements that seem beneficial on their face may look very different when the tax implications are accounted for. For example, many spouses - particularly women with young children - are often hesitant to move the children out of the marital home and will trade other assets to keep ownership. But while a mortgage may initially seem affordable, annual property taxes can cost thousands of dollars more every year. Keep taxes in mind when you divide marital property, allocate retirement funds, and determine who will claim your children on their tax returns. 

Make a Comprehensive Picture of Your Assets and Debt 

It is common for one spouse to manage a family’s finances, and while this can be an effective strategy during a marriage, it can make for complications during divorce. Before you start negotiating a marital property settlement, you need to make sure that you are aware of your complete financial picture. No guesstimates about investment balances or ignoring bills - you need statements, balances, and password and username information so you can log in and access all of your accounts. While this can be a headache, it can also be financially empowering.

Budget Carefully

For many reasons, divorce is not a good time to make major purchases or live a life of profligate freedom simply because you can. While the independence that comes with divorce can be exciting and fun, you are facing a future of living, perhaps permanently, on only one income. Add to that the division of marital property and the potential for child and spousal support payments, and your life quality after divorce may need to be significantly more conservative. The time to start budgeting and preparing for a lower income is now. 

Meet with a Farmington Hills, MI Divorce Lawyer

Planning your finances carefully during divorce is essential for protecting your short- and long-term financial interests once the divorce has ended. For help understanding your options and advocating for a fair marital property settlement, call the experienced Farmington Hills divorce finance attorneys with Elkouri Heath, PLC. Contact us today at 248-344-9700. 

Sources: 

https://money.usnews.com/money/personal-finance/family-finance/articles/financial-steps-to-take-before-during-and-after-your-divorce 

https://www.investopedia.com/personal-finance/mistakes-avoid-when-divorcing-over-50/