Money is a big reason why many couples here in Michigan and across the country end their marriages. Those issues do not end during the divorce process.
If individuals are not careful while going through divorce, they could make mistakes that jeopardize post-divorce finances.
Many married couples have joint debts. Often during the divorce process, debts are divided, with one party being responsible for certain accounts while the other is responsible for the rest.
Problems can arise when parties do not honor the settlement agreement or court order. If the parties do not take steps to remove themselves from the ex’s accounts, they could be responsible for the accounts. Creditors are not bound by divorce settlements and decrees and may try to collect from each person whose name is on the account.
Many people overlook this simple fact: the same monetary resources that used to support one household now must support two. Not taking this into consideration can lead to financial challenges.
Instead, each party should examine his or her post-divorce financial situation and making necessary changes.
Not understanding “equitable distribution”
Under Michigan law, property in a divorce is not automatically divided 50-50. Instead, property is divided based on fairness. This could result in a 50-50 split of property, but it might not. For example, if one spouse made career sacrifices and does not have marketable skills, then that spouse likely would receive more than 50 percent of the property.
Do you have questions?
Instead of going through the divorce process alone and possibly making financial mistakes, it would be wise to speak with an experienced divorce attorney.