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high asset divorce Archives

Tips for dividing IRAs in divorce

Michigan residents may know that an IRA can be split in a divorce. However, it is important to split such an asset properly to avoid paying income taxes. First, the withdrawal must be made pursuant to a divorce decree. Therefore, money should not be taken out of an IRA before the divorce is official, even if there is an informal agreement between the parties to divide proceeds within it.

Divorce and Thrift Savings Plans

Federal employees in Michigan who expect to go through a divorce may benefit from learning how their Thrift Savings Plan, or TSP, may be allocated. There are no existing federal statutes that require a former spouse to automatically receive the funds in a TSP account. In order for a former spouse to receive any part of those funds, the couple will have to agree to the division of the funds, or the judge will determine how much is awarded.

Tips about finances during a divorce

In addition to the emotional challenges of a divorce, Michigan estranged couples might also face financial challenges. However, there are steps that can be taken to prepare financially. On average a divorce costs about $20,000, but this does not take into account the costs in the years ahead.

Tips for preparing financially for divorce

Michigan couples who are getting a divorce might be concerned about how their finances will be affected. There are steps people can take in preparation that may help protect them financially. Sometimes, other people will have well-meaning advice, but divorce laws differ from state to state, and every situation is different as well. It is better to talk directly to professionals, such as an attorney and a certified divorce financial analyst, rather than making assumptions based on others' experiences.

3 signs your spouse may be attempting to conceal assets

The relationship between you and your spouse is growing increasingly strained, and you have a feeling a divorce is in your near future. At this stage in a marriage, one party may try to prepare financially for life after the marriage ends, and sometimes, spouses use sneaky methods to do so.

Using a QDRO in a divorce

Michigan couples who are getting a divorce might need to divide a retirement account. This process usually requires something known as a Qualified Domestic Relations Order. The QDRO is a complex financial document that should not be rushed through. People might want to hire a certified divorce financial analyst to walk them through the document and their choices to make sure they are getting a fair deal.

What happens to a business during a divorce

Some Michigan couples decide to try and start a business together. If the relationship becomes unstable, however, running the business properly may become problematic. While some founders plan for that contingency just in case this should happen, others fail to take this step. The failure to plan could cause the loss of the business.

A Family-Owned Business Can Significantly Complicate a Divorce

While many divorces are resolved amicably, this doesn't mean that they cannot become complicated. When a couple with a high net worth undergoes a divorce, it can be a challenge to divide the assets. There are multiple investment portfolios, property that resides in different states, and numerous other high-value items. This process becomes even more complicated if the couple owns a business together.

Costs when dividing a 401(k) in divorce

Spouses in Michigan who are divorcing will need a document known as a Qualified Domestic Relations Order if they want to divide a 401(k) account. Unfortunately, the costs for preparing such a document could be anywhere from $300 to $1,200 and more. Often, these fees are imposed by third party administrators.

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