Michigan couples may be interested to learn that a survey of more than 2,000 adults found that money is the primary cause of relationship stress. Thirty-five percent of the respondents highlighted finances as the main issue of contention between them and their significant other.
Older couples in Michigan who are considering getting a divorce may be wondering how the process may impact their retirement. The rate for gray divorces, or divorces that take place among adults who are at least 50 years old, is twice what it was in the 1990s, according to data from the Pew Research Center.
For older divorcing couples in Michigan, needs are often different. Children are usually grown, so child custody isn't usually necessary. Also, so-called "gray divorces" are often less contentious. Some long-term partners simply drift apart. And with divorce rates among adults 50 and over having doubled since the 1990s, there are more older couples dealing with the challenge of dividing assets and protecting retirement savings during a divorce.
Many high-earning Michigan residents store a substantial amount of assets in 401(k) plans and other forms of retirement funds that can generate additional funds through interest. If these individuals decide to divorce, however, their retirement accounts could be in jeopardy. The financial repercussions of divorce can linger long after the emotional or practical changes that accompany the end of a marriage have faded. Even for high earners, rebuilding retirement funds can take work and planning, especially given the annual cap on contributions to certain qualified plans.
When people in Michigan decide to divorce, the financial aspects of the end of a marriage can carry with them some unpleasant surprises. In one recent survey, around 46 percent of divorced women said that they encountered major surprises about family finances during the divorce process. The survey included 1,785 women who were either divorced or in the divorce process, one-fifth of whom were age 55 or older. The respondents noted some common themes as the source of financial shocks during divorce.
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.
When it comes to post-marriage financial issues, women who are 50 or older are more likely to be affected. Divorce and widowhood often leave older women in Michigan particularly vulnerable on the financial front.
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.
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.
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.