Consider family law and taxes when planning post-divorce finances

| Jun 19, 2018 | Family Law |

According to the National Center for Health Statistics, 800,000 couples in the United States divorce each year. The reasons behind these divorces may vary, but almost all of these breakups involve big family law and financial considerations. Michigan individuals who need to rebuild financially after a divorce are advised to think ahead so they can advocate for their needs in mediation or court.

Besides splitting property, there may be many fees for services related to divorce. This can include everything from having a marital home appraised to legal fees to counselling to get through the challenges. Plan ahead with these fees in mind, and have a clear understanding of finances prior to hiring professionals by collecting documents such as tax returns, bank statements and loan information.

Along with family law, divorcing individuals should be aware of how tax law affects their settlement.  In 2019, a major change to these tax standards will not allow alimony to be tax deductible anymore. Considering taxes when splitting property, negotiating alimony or discussing child support is critical to setting up a financially sustainable system.

Overall, people facing a divorce in Michigan will do well to plan as thoroughly and as early on as possible. This includes developing a new budget that aligns with single income, accounting for moving costs and new furniture needs. It also means planning next steps in terms of career and money and envisioning future plans to make them a reality. A family lawyer can help people understand their rights and obligations in splitting assets, paying or receiving alimony and any other family law issue.

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