Some people in Michigan may think of strategic divorce as primarily an option for ultra-wealthy couples. At the highest tax bracket of 37%, two high earners may end up paying more in taxes as a married couple than they would as single wealthy individuals. Some have speculated that more couples may choose to divorce if tax reforms are implemented that raise the tax burden imposed on the wealthiest individuals and couples across the country. In practice, though, the tax savings realized through a divorce are usually far smaller than the costs associated with a divorce itself, and most people involved are too wealthy to be concerned about the relatively small tax difference.
Is cashing out your portion of a 401k a good idea?
It almost goes without saying that your divorce in Clinton Township will bring with it a good deal of uncertainty. While it may be relief to no longer be involved in whatever bitterness may have permeated your marriage towards its end, you may now find yourself needing to secure new housing, go back to school or through career training, or in need of many other things whose expenses might be high. Spousal support may assist in handling these costs, but there is no guarantee that it will be awarded in your case. One source of funds that you may want to look to for a quick infusion of cash is your ex-spouse’s 401k.
Three signs a divorce may be imminent
Michigan spouses who are having marital problems know that the decision to divorce is difficult. However, there are certain red flags that could indicate that a marriage is heading for divorce.
Reviewing COBRA coverage requirements
Most in Clinton Township do not need to be told that healthcare can be costly. Fortunately, many are able to shoulder the burden of those costs thanks to the financial assistance offered through their insurance providers. According to information shared by the U.S. Census Bureau, over 67 percent of those who carry health insurance in American are covered by private plans. Of those beneficiaries, 56 percent obtain their coverage through their employers. What happens, then, when a couple divorces and one spouse is no longer directly associated with the sponsoring organization?
Divorce trials require specific planning
Many divorces are handled before the case has to go to trial. If you find that you are going to have to go through a divorce trial, prepare before the day comes. Your attorney is likely going to prepare the legal side of the case, so you will be able to focus more on your emotions and how to handle yourself in court.
