People choose to stay in a loveless or unhealthy marriage for
a multitude of reasons—one of the main reasons is based on financial needs and
comfort. While many marriages do better with joint incomes, some couples find
extra financial freedom as single entities. Of course, preparations must be
done and changes must be applied to get to that point, regardless of the
reasons behind the breakdown of the marriage. If done correctly, this shift of
finances can help you heal and move on to create a new successful life from the
remnants of your emotional tragedy.
Why Does Your Michigan Divorce Attorney Encourage a Debt-Free Divorce?
The average American household is buried in debt. The luxury “must haves” accumulated throughout wedded bliss often become thorns in the side when the warm and fuzzy feelings fade away. When it comes to divorce, all that is owed doesn’t just get tossed to one side—it gets split down the middle. Anything with your name on it—bank accounts, mortgages, loans, credit cards, even overdue video rentals, stocks, bonds, retirement earnings, trust funds, savings, property, and children—is assessed in court for your required division and payment. Generally, one spouse handles most, if not all, of the financial matters. If you’re not that person, be sure to educate yourself before filing for divorce.
Therefore, when the time comes to file your separation or divorce paperwork, it’s essential to go in with a plan. The best option is to have your name off of the joint bills and have your own paid off in full. If the latter can’t be achieved, at least attempt to get your own bills down to a reasonable monthly payment that you can afford on your own salary. Each state has different laws regarding the division of bills and property. And, of course, a pre-nup affects the final settlement. Foregoing proper planning prior to your divorce can set you up for instant failure after it’s finalized.
Why Are Financial Challenges So Common After Divorce?
Divorce isn’t an easy or typically financially rewarding option. Certain losses may be necessary to survive the experience. In the end, it’s usually worth the effort, so don’t fear. A financial advisor can assist in the most difficult situations. Research has found that in order to maintain the same lifestyle as you had while married, you’ll need a 30 percent hike in income. On average, 20 percent of divorced women fall into the poverty bracket post-divorce. And 75 percent of women fail to receive full child custodial benefits. But women aren’t the only ones who suffer. Men lose 10-40 percent of their pre-divorce financial security. Overall, this leads to an annual nationwide family income loss of $100 billion.
A lot of these worries can be corrected before your divorce process begins. Assess your personal financial situation to see what needs addressed. Establish a divorce budget and prioritize bills and necessities. Take firm control of your debt, and establish credit under your own name. Change insurance and beneficiary information, and consider tax implications.
And when that’s all addressed, seek professional assistance from
your Michigan divorce lawyer. You can achieve a financially successful
divorce.
Michigan Divorce Help
110 S Main St #200
Mt Clemens, MI 48043
United States
(586) 954-9500
http://www.michigandivorcehelp.com/
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