Kline Legal Group P.L.C.

high asset divorce Archives

New tax laws could impact the outcome of divorce cases

Michigan couples going through a marriage dissolution in 2018 may want to ensure that they get a divorce decree before the end of the year. This is particularly important if their case happens to involve a lot of assets. The tax reform package approved by the Trump administration has a few line items that will impact the financial outcomes of divorce cases across the United States.

Entrepreneurs and divorce

For entrepreneurs in Michigan, their business may be the most valuable asset they own. If they are getting a divorce, it can also be one of the assets that may be subject to division. It is important that entrepreneurs, whether they are sole proprietors or co-own a business with a future ex-spouse, are aware of the true value of their company.

Asset division can be key to a secure financial future

The financial issues involved in a divorce can often be the most complicated and contentious aspects of the end of a marriage, for couples of all income levels. Outweighing the personal and emotional fallout of a split, the financial effects of divorce can linger on for years after the marriage has come to an end. When couples make the decision to split, taking steps to protect one's assets and prepare for the financial future are essential to planning for post-divorce life.

High-value retirement plans can be a major divorce issue

Michigan couples going through divorce should use due diligence when dividing retirement accounts. As the fruit of a lifetime of work, these accounts are often the largest assets held as marital property. Both parties may be reliant on these funds for their financial health and future. This is one reason why 62 percent of divorce attorneys surveyed in a 2016 study rated retirement funds as the most contentious issue faced by their clients.

Protect yourself from post-divorce tax mistakes

Michigan residents filing for divorce are likely cognizant of the emotional challenges that divorce places on the separating couple, as well as their family. They likely are aware of the financial challenges that come from separating property, separating bank accounts, and the like. One area that they may overlook is the challenge associated with taxes. They may be surprised that some of these tax implications may persist for years after the divorce has been finalized.

Dealing with businesses during property division negotiations

Property division negotiations between divorcing couples in Michigan can be especially contentious when a family business is involved. Talks often get bogged down when spouses disagree about what a business is worth, and entrepreneurs may be accused of concealing income or hiding assets. Spouses may also be asked to choose between accepting payment for their share of the company and receiving spousal support based on anticipated future business income.

Divorce can mean splitting a business partnership as well

Divorce can always be a difficult time for Michigan couples. It can become even more complicated when both spouses are part of the same company especially when they are the owners. When married couples own a business together, a divorce can have an array of consequences not only for each partner but for the future of the business itself.

Bitcoin can add new wrinkles to high asset divorce

Divorce is frequently complex and emotionally fraught for people in Michigan and across the United States. However, it can also be a complicated financial and practical matter, with serious implications for both parties. When people have significant assets on hand, including businesses, investments, valuable real estate or other wealth, spouses may be highly invested in protecting their assets and emerging from the divorce with their standard of living and resources in place. The rise of bitcoin and other cryptocurrencies has added an interesting wrinkle to the division of property in high-asset divorces.

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.

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