Recent Blog Posts
What Happens to Life Insurance in a Divorce?
You and your spouse likely had one or more life insurance policies during the course of your marriage. The need for life insurance does not end just because you no longer have a spouse. Divorce should cause you to reconsider your insurance situation and potentially make changes. A divorce attorney with experience in gray divorces can advise you on how life insurance is treated in a divorce.
Cash Life Insurance May Be Divided
If you had a permanent life insurance policy, it has built up a cash value over time. This cash is akin to equity, and it grows over time based on your investment performance. Even if you terminated the policy, you would still be left with money. The cash value of the policy is considered a marital asset. You may agree to terminate coverage and divide the cash value, after accounting for a surrender policy.
Term Life Insurance May Have Different Treatment
What Happens in a Divorce if I Receive an Inheritance During the Marriage?
Your financial fortunes could change when you receive an inheritance. If you go through a divorce after you receive the inheritance, you want to ensure that you keep the entire amount. The good news is that Michigan law would largely protect the property you have received, unless you have mixed it with marital property. A divorce attorney could advise you further on how an inheritance is treated in your own specific circumstances.
The General Rule Is that an Inheritance Is Separate Property
In general, property received by inheritance during a marriage would be considered separate property, and it would not be subject to equitable division under Michigan law. This rule applies, regardless of whether you inherited the property before the marriage or during the marriage. While that is the general rule, there are reasons why an inheritance could be subject to division. For example, if you have commingled the inheritance with marital assets, it could become marital property. If you have deposited the inheritance into a joint account, or you used it to purchase an asset that was jointly titled, your spouse may then be entitled to their share
How Can I Find My Spouse’s Hidden Assets?
Michigan is an equitable distribution state, meaning that marital assets are divided based on equitable principles. The legal process depends on spouses to make full and fair disclosure of their assets. Some spouses may try to hide assets to keep them for all for themselves after the divorce. A divorce attorney can help you locate hidden assets during the divorce process.
You Can Obtain Financial Information from Your Spouse
In any divorce, contested or uncontested, the two spouses will exchange information about their assets with each other. This can include statements from bank and investment accounts. Each spouse must make full disclosure of their own finances to the other. The settlement that you reach will be based on the disclosures that both of you make. There are serious consequences if one spouse tries to hide assets. Nevertheless, many people try it, thinking that they can get away with it.
How Spousal Support is Determined in Michigan
Spousal support, or alimony, ensures the financial stability of spouses who earn less than their ex-spouse. In Michigan, judges consider several factors when determining this amount. In other words, unlike child support, there is no formula for determining spousal support in the state.
The state does not guarantee that spousal support will be awarded in each divorce case. Some of the factors that judges in Michigan look into when they have to determine spousal support include the following:
Cohabitation
Alimony may not be applicable if the recipient is living with or cohabitating with someone after their divorce.
Fairness
Determining if the spousal support receipt or payment is fair or not. There are no easy answers to this, so most people go for mediation to determine a fair amount.
Filing for a Military Divorce in Michigan
Getting a divorce is not an easy decision, but it can be especially challenging if one or both spouses are active United States Armed Forces members. Deployments can significantly impact the outcome and timing of a divorce case.
Issues That May Affect a Military Divorce
Michigan is a no-fault state, which means the grounds for divorce will involve an “irretrievable breakdown of the marriage.” These grounds will apply in military divorce cases. In the state, one spouse can file a complaint with the circuit court in their county of residence and serve their spouse with a summons. Both the summons and a copy of the divorce must be personally served to the spouse in order for the court to have jurisdiction over the military member.
In cases where the military member is deployed overseas or in a location other than where the divorce has been initiated, they can sign an affidavit proving they know the summons and court action. This may allow the to be delayed until the spouse returns from wherever they are stationed. The active military spouse can also sign an affidavit allowing the divorce to proceed in their absence, although this is generally not recommended, since it is important for a spouse to play a role in the decisions made about the end of their marriage.
Divorce and Tax Ramifications in Michigan
Going through a divorce can have significant financial implications. In addition to dividing assets and determining support payments, it's essential to understand the tax consequences involved during a divorce. This blog will explore the key aspects of divorce and tax implications in Michigan, providing valuable insights to help you make informed decisions during this complex process.
Filing Status and Exemptions
One of the crucial considerations during divorce is the change in filing status. You have two options in Michigan: Married Filing Jointly or Separately. Each option has its own impact on tax rates and deductions.
If you file jointly, both spouses are equally responsible for the tax liability. However, filing separately may be necessary in certain situations, especially if there are concerns about the accuracy of reported income or potential tax fraud. It's important to carefully evaluate the tax consequences of both options before making a decision.
Michigan is a No-Fault Divorce State - What Does That Mean for Divorcing Couples?
Going through a divorce can be emotionally challenging and legally complex. In Michigan, couples will pursue a no-fault divorce, meaning the spouses will not need to assign fault for the marital breakdown. If you are getting divorced, you will not be required to list adultery, abuse, or other fault-based reasons on the divorce petition to be granted a divorce. However, fault can still affect the outcome of a Michigan divorce case.
What is a No-Fault Divorce?
In Michigan, a no-fault divorce is based on the concept that the marriage has irretrievably broken down, and there is no reasonable likelihood of reconciliation. To initiate a no-fault divorce in Michigan, one spouse will file a Complaint for Divorce with the appropriate county court. The complaint outlines the reasons for seeking divorce and may include requests for child custody, support, and property division.To file for divorce in Michigan, at least one spouse must have resided in the state for a minimum of 180 days before filing. Additionally, the divorce must be filed in the county where either spouse currently resides or where the couple last resided together.
Understanding Spousal Support After a Michigan Divorce
Alimony, or spousal support, is awarded by Michigan courts to a spouse after a divorce. Each state has its own laws, and the court can be flexible in its judgment based on the circumstances surrounding a case. This includes determining if awarding support is appropriate, how much alimony should be awarded, and how long the payments will last.
Factors Considered When Determining Alimony
During a divorce, it is common for a judge to decide if a spouse qualifies for alimony and how much they should receive. When a spouse requests alimony, a judge may base their decision on the following factors:
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The career and education of each party during the marriage: It is important to consider if each spouse has the resources to support themselves after the divorce, including their employment status.
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Ability to work: In most cases, a judge may award alimony to the spouse who cannot work or is unlikely to find employment.
Michigan Divorce FAQs for Stressed Clients
Did you know Michigan was the first state to adopt a no-fault divorce system? This means that fault is not taken into consideration during divorce proceedings. This is just one fact out of many that people who wish to end their marriage must know before they file for divorce. Here are some frequently asked questions regarding divorce in Michigan and their answers:
Does Michigan Have a Residency Requirement for Divorce Filings?
You and your spouse must have lived in the state for at least six months before you file for divorce. Additionally, you must live in the county you are filing for at least 10 days before submitting the required paperwork.
Can Infidelity be Used as Grounds For Divorce?
Michigan is a no-fault state. This means neither party has to prove wrongdoing to dissolve a marriage. However, you can file for divorce, citing irreconcilable differences by stating the marriage is irreparably broken. A judge may consider fault when determining spousal support obligations.
7 Important Considerations During a Military Divorce
Divorce can be complicated, but a military divorce comes with additional complexities that must be carefully considered. If you or your spouse are in the military and considering a divorce, it is important to understand the unique challenges and legal considerations that come with it.
In this blog, we will discuss some important facts that you should know about a military divorce in Michigan.
Here is everything you need to know:
Residency Requirements
In Michigan, either you or your spouse must be a resident of the state for at least 180 days before filing for divorce. The residency requirement can be waived if you or your spouse are on active duty and stationed outside of Michigan.
Division of Military Retirement Benefits
Military retirement benefits are considered marital property and are subject to division during divorce. Michigan is an equitable distribution state, meaning the marital property is divided fairly, but not necessarily equally, between spouses. In order to divide military retirement benefits, a court order called a "Qualified Domestic Relations Order" (QDRO) is necessary.