Getting divorced is difficult in the best of circumstances. Generally, couples who divorce fight the most about financial assets and child custody. The greater the assets, the more likely that there will be a contentious, drawn out divorce battle.
For people in Michigan who have considerable assets, one element that should be seriously considered in the division of marital property is how it will affect their taxes. In most instances, the Journal of Accountancy points out that taxes will not be levied against property that is transferred to one spouse from another according to a written property settlement agreement. For example, if one spouse agrees to transfer a real estate property that is worth $5 million, the spouse is protected against a taxable gift transfer if the terms are in writing.
If you or your partner owns valuable assets, then you might have talked about signing a prenuptial agreement. You might have also heard about something similar called a postnuptial agreement and wondered if it might be better for you. According to First Wives World, the two contracts are similar, except postnuptial agreement is handled after your official marriage while a prenuptial agreement is done prior. However, there are other complexities involved, since marriage affects property ownership.
During a contentious divorce, you may be tempted to hide some of your assets from your soon-to-be-ex spouse. This might include misreporting the actual value of something, or putting money or assets in secret accounts. However, when you divorce in Michigan, the law dictates that you must honestly and fully disclose everything that you own. This includes providing an accurate valuation of property, debt, income and expenses, according to Forbes.
Although filing for divorce in Michigan is a personal decision, you are far from alone by choosing this path. However, you may have read conflicting reports about the divorce rate because many researchers over the years have seemed to disagree over whether marriages have become more stable. Now, a new study claims that the number may be going up, and according to Bloomberg News, one researcher lays the blame for the increase on gray divorces.
Couples may believe that a happy marriage requires more than financial stability and possessions. However, leaving a marriage that includes these things in substantial amounts may be difficult, since it typically involves more complex processes to identify, value and equally divide these assets. So, as MichiganLegalHelp.org explains, dividing Michigan real estate and other assets often requires outside assistance, even when a couple wants to work things out amicably.
The commitment involved for a successful marriage in Michigan often leads couples to willingly share the possessions and assets that they owned before they made their vows. However, once a divorce is on the horizon, a spouse may re-evaluate that decision, hoping to regain the items in question. MichiganLegalHelp.org explains that if the court considers an asset to be marital property, it will be divided equitably according to the state’s property division law, but it may not divide assets that have remained separate.
While you may view marriage primarily as a commitment that two people make when they love each other, it is also a legal agreement. When you entered into a contract with your spouse, it affected the assets and liabilities owned by each of you. Creating a prenuptial agreement may have been your way of defining the terms of the contract to provide financial protection. Facing a divorce, you need to examine your agreement to make sure that it is as effective as you intended it to be, particularly if your spouse no longer wants to abide by the terms that were set.
When it comes to a divorce in Clinton Township, Michigan, any asset the couple owns is subject to equitable division. While a valuation expert may be able to help place a dollar amount on objects such as antiques, art, automobiles and other tangible items, the value of credit card reward points may not be as easily identifiable.
In Clinton Township, Michigan, divorce does not have to be acrimonious. However, when you and your spouse are facing the division of complex marital property, trust may be difficult to come by. All sources of income and expenses have to be listed, and you may worry that your spouse is withholding or undervaluing assets, whether intentionally or not. According to Forbes magazine, many couples with widely varied types of income and complex portfolios have addressed the valuation of their marital property by hiring a forensic accountant.