When people in Michigan decide to divorce, the financial impact can be long-lasting and severe. However, business owners may have unique concerns about their particular situation. A small family business may be the largest asset owned by a couple, and it may also provide the bulk of the family income. Some entrepreneurs may worry that their business will fall apart under the weight of a divorce settlement while others may be concerned that they will remain yoked against their will in a partnership with their former spouse.
Deciding what to do with the family home is one of the biggest issues facing most people who get divorced. However, there are questions that Michigan homeowners and others should ask before taking a home in a divorce. The first thing that a person needs to determine is how much equity is in the home. Equity is the amount the home is worth after subtracting a mortgage balance or any other loans associated with the property.
Ever since their introduction back in 2008, cryptocurrencies have had a major impact on the financial and legal worlds. For instance, upon shooting up to around $20,000 a coin, bitcoin has become an alluring investment for anyone looking for a high-risk, high-reward scenario. Even though bitcoin has fallen to one-fifth of its all-time high, people still use it as a store for value and potentially lucrative investment. Seeing as bitcoin has been added to several investors' portfolios, it now comes up repeatedly in divorce proceedings, which presents lawyers with its own set of problems.
Many people in Michigan end up divorcing and getting remarried later on. While people might not think about entering into prenuptial agreements when they get married the first time, having one before entering into second marriages after the individual spouses have accumulated assets and have had children might be a good idea.
Not every high-net-worth divorce generates much watercooler talk in Michigan unless this type of split involves the head of one of the biggest online retailers in the world. Amazon founder Jeff Bezos and his wife of 25 years announced plans to end their marriage shortly after the beginning of 2019.
When Michigan business owners get a divorce, it may be necessary to determine what portion of the business the other spouse is entitled to claim. The first step in this process is to get the business appraised.
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.