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high asset divorce Archives

Properly dividing an IRA in a divorce

During a divorce, retirement accounts are normally assets that are subject to division. Traditional ERISA pensions, 401(k)s and 457 accounts, Roth and traditional IRAs can be considered assets of the marriage. Separating persons in Colorado should be aware that these assets must be treated differently in a divorce or separation.

Steps for financial protection in divorce

People in Michigan who are getting a divorce might need to protect themselves financially during this vulnerable time. Despite the overwhelming emotions of the moment, it is important for spouses to take steps toward protecting their short and long-term financial health.

Potential problems with retirement accounts in DIY divorce

In Michigan and around the country, some couples who have made the decision to divorce forego legal counsel and try to handle much of the settlement of financial assets on their own, including the daunting task of dividing property and accounts. Retirement accounts and pension plans can be difficult to allocate without a properly executed legal agreement and can result in one or both parties owing significantly more in taxes than they should.

Dealing with a difficult spouse in a divorce

Individuals in Michigan who are going through a divorce might wonder what property their spouse may be able to claim. For example, one 61-year-old woman in California was the main breadwinner in her relationship for about 10 years before seeking a divorce. Her husband would not share financial information with her attorney even though she turned over financial records to his attorney. He told his wife he wanted the entire home and half of her 401(k). His wife also believed he was hiding assets.

Divorce and taxes

Michigan couples who get a divorce will also see changes in their taxes. It is important that individuals are aware of this so that there will not be any unpleasant surprises at tax time.

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.

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483 Little Lake Drive, Suite 200
Ann Arbor, MI 48103

Phone: 734-249-6100
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