The expense of divorce can lead to financial reorganization

On Behalf of | Apr 30, 2014 | Divorce |

When a Michigan residents goes through a divorce, many issues have to be resolved. Matters of child custody, visitation, asset division and property valuation and alimony all are at the forefront of most divorces. These are just some of the things that need to be settled in divorce situations. Outside of these, there is also the emotional aspect of divorce.

Outside of the emotional toll that a divorce can take, getting a divorce can be costly. If the divorce is a contested matter, many people will get as much information as they can in order to ensure that their rights are protected. Once the divorce is finalized, rebuilding one’s finances is vital. Looking at retirement planning, beneficiaries and rebuilding credit are all things that will make for an easier financial transition post-divorce.

As far as what the ultimate cost of divorce will be in monetary terms goes, the courts play a role in this to some degree. The law of the state where the divorce occurs will determine how the assets and property of divorce are divided. Some states are community property states wherein no matter what happened to cause the divorce the property is split evenly down the middle, unless there is a prenuptial agreement. Other states are equitable division states, which means that the courts are looking to make the distribution equitable among the parties, but not necessarily equal as in a 50/50 split. That is why it is crucial for Michigan residents who are contemplating divorce to make sure that they have all of the right information about what could happen in their case.

Source: Daily Finance, “5 Tasks to Help You Start to Rebound Financially Post-Divorce,” Hank Coleman, April 29, 2014

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