Kline Legal Group P.L.C.

high asset divorce Archives

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.

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.

Email Us For A Response

Contact Kline Legal Group P.L.C.

Kline Legal Group P.L.C.
483 Little Lake Drive, Suite 200
Ann Arbor, MI 48103

Phone: 734-249-6100
Fax: 734-302-7222
Map & Directions

Contact Our Office

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy