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Recent Blog Posts
Division of Retirement Accounts a Growing Concern in Divorce
Most Americans can expect to live for about 15 to 20 years after their retirement. But are we saving enough to live comfortably in retirement? Among families with income in the 50th percentile and above, over 80 percent at least have some type of retirement account, such as an IRA, 401(k), or defined-benefit pension plan. That is a good start, but most are not saving enough.
A recent survey found that just 40 percent of those aged 35-54 and just 50 percent of those age 55+ have over $100,000 in retirement savings. By most accounts, this is not nearly enough, even considering the addition of Social Security payments. According to a recent Harvard Business Review article, a median income worker can only expect their Social Security payments (after Medicare premiums) to equal 29 percent of pre-retirement income.
Hence, it is important to highlight the need to make sure retirement accounts are equitably divided in a divorce. It is all too easy to focus on pressing issues like child support and what happens to your house, and possibly miss out on what is due to you from a spouse’s employer-held 401(k) or pension plan.
Legal Watch-Outs for Remarriage After Divorce in Michigan
First marriages tend to be colored by the innocent blush of first love and all the fun of planning a big wedding and choosing cakes, dresses, dinner menus, and flowers. Second marriages, on the other hand, are often shaded with more doubts and concerns, particularly on the financial front. Consider the following issues that second-marriage partners should discuss, sooner rather than later.
Obligations Related to Prior Marriages
It is not uncommon for one or both partners in a second-marriage situation to have debts, child support, and/or spousal support obligations from a prior marriage. Remarriage may also be a reason to revisit and possibly modify modify support obligations and parenting time agreements, particularly if the remarriage also involves a change of residence and/or job.
Marriage and Divorce in the United States
Is it still true that “Love and marriage, love and marriage, go together like a horse and carriage?” According to the latest U.S. Census statistics, love and marriage do not go together as much as they once did.
What Percentage of Americans Are Married?
U.S. Census data shows that the percentage of Americans over age 15 living in matrimony has declined over the past 20 years, from 56 percent in 1997 to 52 percent in 2017. Even if you only count adults age 20-64, you still get a 52 percent married rate.
The decline is attributed to people choosing to marry at a later age or not at all. The percentage of the population age 15+ who have never been married increased from 22 percent in 1997 to 32 percent in 2017. Also, the median age at first marriage went up between 1990 and 2015, rising from age 26.1 to 29.5 for men and from age 23.9 to 27.4 for women.
What Happens to Pets in a Michigan Divorce?
How deep is the relationship between people and their pets? Just consider some of the terms you hear these days: Pet parents, dog mom, even grand-dog. Additionally, most of us have seen at least one car window with a sticker saying “Fur Babies on Board” or “My dog is smarter than your honor student.”
National statistics back up the bumper stickers. A 2016 survey reported that 68 percent of U.S. households have at least one pet (a figure which has been trending upward for over two decades), and 84 percent of pet owners now think of themselves as pet parents rather than pet owners.
Therefore, not surprisingly, “Who gets the pets?” has become an increasingly contentious issue in divorces, as emotions over pets can run high, even in an otherwise uncontested divorce. Devoted pet parents may be shocked to learn that virtually all state divorce laws still treat pets as mere property to be divided, like a TV and the lawn mower. However, this is beginning to change.
What to Do When Your Ex Is Not Complying with Child Support or Parenting Time Orders
When one parent fails to pay child support or cooperate with the court-ordered parenting time schedule, it creates a sad situation for the child as well as conflict between the parents. For the benefit of all, it is best to address non-compliance issues quickly and not let them drag on. In Michigan, the Friend of the Court (FOC) office of your local circuit court has primary responsibility for enforcement of child-related court orders.
Failure to Pay Child Support in Michigan
To help ensure accurate and consistent records, Michigan handles child support payments electronically, with all payments made to and disbursed by the Michigan State Disbursement Unit (MisDU). In most cases, the court that handles your divorce will issue an income withholding order. This requires the payer’s employer to withhold (and forward to MisDU) the required amount of child support from the person’s paycheck. Self-employed payers will make payments directly to MiSDU.
Changing Your Michigan Child Support or Parenting Agreement
For a divorcing couple with minor children, the process of developing financial support and co-parenting agreements that meet the needs of the whole family can be both complicated and exhausting.
Once it is done, you hope the original agreement will work until the children reach majority, but then fate intervenes. Parents may relocate, change jobs, have their working hours modified, have a significant change in income, or be stricken by a serious illness. Children may change schools, have ever-changing extracurricular activity schedules, or develop new medical issues. These are just a few of the many reasons that may necessitate a revision of your existing child-care agreement.
How Child Care Agreements are Documented in a Divorce
When a couple divorces, the court signs two key documents which define how the couple’s children will be cared for.
Trends in Michigan Divorce, Child Custody, and Child Support
When working through a divorce, it is common to feel lonely and wonder how you will cope on your own. Moreover, if you have children to care for, worrying about how you will manage the new complexities of divided childcare costs and parenting time is natural.
While every family’s situation is unique, stepping back and looking at statewide outcomes and trends can provide a helpful perspective.
Michigan Marriage and Divorce Numbers
If you are going through a divorce this year, you are definitely not alone. Out of Michigan’s 10 million people, there are about 60,000 marriages per year and 30,000 divorces. This rate of about one divorce for every two new marriages has been steady for over 20 years.
Trends in Custody and Parenting Arrangements in Michigan
Understanding the Government Agencies Involved in Michigan Divorces
Divorcing couples with minor children will quickly become familiar with multiple government agencies, including:
- The Family Division of the circuit court in the county where the divorce is filed;
- The Friend of the Court (FOC) office in that county; and
- The Michigan State Disbursement Unit (MiSDU).
These three government units each play an important role in ensuring that Michigan children of unmarried/divorced parents receive the best possible care and financial support. Consider the following simple overview to help you understand the role that these agencies will play during and after your divorce.
The Family Division of the Local Circuit Court
Michigan has 57 circuit courts covering its 83 counties. Circuit courts are typically located in county courthouses. The Family Division of the circuit court was created by state statute in 1996. Family Division judges handle all cases involving divorce, paternity, adoptions, and other matters of family law. This is where you will file for divorce, attend hearings before a judge, and have your final divorce agreement approved.
Smart Steps to Take Before Filing for Divorce
The longer you have been married and the more assets you have accumulated, the more complicated it will be to unweave the financial and logistical fabric of your married life. Additionally, once you officially file for divorce, you can quickly find yourself caught up in a tsunami of paperwork, meetings, and emotions. Therefore, it is important to take some preparatory steps before filing for divorce.
Organize Documentation
- Make an itemized list of your income sources, assets, debts, and shared service accounts. Include bank/investment/retirement accounts, insurance policies, credit cards, loans, cell phone plans, etc. Also, include account numbers and passwords for online access.
- Gather copies of important documents such as tax returns and vehicle title and registration papers.
Understanding the Risks of a High Asset Divorce
If you are a member of a high net worth family and accustomed to a certain standard of living, a divorce can post a significant threat to your assets and lifestyle. To protect your best interests, you should understand the unique risks and challenges you may face in a high asset divorce.
Take the Time and Get the Advice to Do It Right
You may want to get your divorce over with as quickly as possible, so you can move on to the next phase of your life. You may not want to devote a lot of time to the process, as you may run a business that requires most of your attention or have a job that requires a lot of time away from home.
However, you must remember that the decisions made during a divorce settlement have long-term implications, possibly through the end of your life. In a high asset divorce, it literally pays to hire the right experts to ensure an equitable division of assets.
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