Financial planning is important throughout various phases of one's life. Many times, decisions that can have lasting financial implications are made based on emotion. This is often the case when a Michigan resident decides to divorce.
Prior to and throughout the divorce process, emotions are generally a guiding force. Decisions are often made based upon feelings, wants and desires rather than sound financial advice and planning. The desire to keep certain assets can overwhelm the individual and cloud sound judgement.
For instance, many times, one individual may want to keep the family home and forgo other cash type assets. While the family home holds many memories, it often ties up funds that may become necessary as one seeks to establish a new life on his or her own. Some financial experts recommend maintaining joint ownership of the home until it can be sold. Then the equity can be divided between the individuals per the divorce agreement.
Establishing a new life outside of the marriage is a time of transition and change. While one may believe that he or she has a financial plan in place, it is necessary to plan for the unexpected. One never knows when car problems will strike or illness will occur. Thus, if cash assets are available, one may want to consider retaining some of them as part of the divorce settlement.
Each individual's marital and financial picture is different. As such, each Michigan resident will want to work with experienced legal counsel in determining the best strategy throughout the divorce. This will need to include a plan for facing one's future after the divorce is finalized.
Source: Forbes, "How To Handle Financial Planning During A Divorce: 4 Steps To Protect Yourself", Joel Johnson, Dec. 8, 2017