When you are planning to file for divorce in Michigan, it is extremely important to consider the financial effects of dissolving your marriage. You should keep in mind that you will likely be going from paying shared bills and expenses for a single household (with your spouse) to making individual payments on your own for a new household. In other words, divorce can be financially difficult for many people, and as such, you should always have a financial plan in place. A recent report from CBNC provides some information about the most meaningful ways to create a financial plan for your divorce.
Create a Budget for After the Divorce
As we mentioned above, once you are living separate and apart from your spouse (and once the divorce is finalized), you will be spending more money on household bills and expenses than you were when you were sharing those costs with another earner. As such, one of the first things to do when planning financially for divorce is to create a budget. You should gather your own financial information and make clear what your monthly expenses will be and how those expenses will get paid.
If you recently filed for divorce and still have time to plan for the financial aspects of property division, you should also create a budget of marital debts that should get paid prior to the divorce, as well as major marital assets, such as a home, that are likely subject to division.
Consider Childcare and College Tuition Expenses
If you have children with your spouse, any post-divorce financial planning needs to take into account childcare costs and college tuition expenses. If you are still on amicable terms with your spouse, you can discuss how childcare costs will be paid while the child is still a minor, and then how college tuition and fees will be paid once the child goes to college. You can even make plans for other major financial issues involving your children, such as financial help for your child’s wedding or graduate school program.
Spousal Maintenance or Alimony can Affect Your Budget
You should consider whether you are likely to be paying or receiving alimony. Not all divorces include alimony, or spousal maintenance payments. At the same time, when a spouse is required to pay or to receive alimony, that money can drastically change a post-divorce financial budget. You should talk with a Michigan divorce lawyer about whether you are likely to pay or receive alimony in your divorce.
Consider How Your Divorce (and Possible Remarriage) May Affect Social Security
If you and your spouse were married for at least 10 years, you may be able to claim Social Security benefits from your spouse. However, this can get complicated if you decide to get remarried after getting divorced. You should speak with your divorce lawyer about how Social Security benefits work and whether you can factor these into your post-divorce budget.
Learn More from a Michigan Divorce Lawyer