November 1, 2019

Tips for Managing Finances Through a Divorce

It seems that the divorce rate in the United States is slightly decreasing when it comes to younger couples, but it is on the rise for couples who are 50 years and older. One factor that contributes to some Michigan divorces is financial problems. There are several steps that individuals can take to reduce the financial fallout that comes from a divorce and to help them keep their emotions in check as their financial future seems uncertain.

In some marriages, one individual is responsible for handling financial tasks. This individual usually is aware of assets that the couple shares, when the bills need to be paid and how to access financial accounts. When a person is going through a divorce, they need to be sure that they have access to this information. They need to be aware of how much of the assets they will be entitled to and know exactly how to access them.

A divorce can affect retirement and investment accounts. It is important for each partner in the marriage to be aware of any tax consequences or penalties they may face when they get divorced. For example, in most states, retirement accounts are looked at as marital property. This means that a retirement account could be split during a divorce. It also could mean that fees and taxes would be triggered if the account is divided.

Changing beneficiaries on accounts is essential after a divorce. This usually involves contacting the institution where an individual has a bank or investment account.

A family law lawyer may help clients as they go through the process of dividing assets. A lawyer may be able to help a person understand how divorce would affect their finances as well as provide information about spousal support, property division, child custody and other matters that arise at the end of a marriage.