
Financial Benefits of a Michigan Divorce
On Behalf of Law Offices of Michael A. Robbins | Dec 18, 2018 | Uncategorized |
Can divorce have financial benefits? Anyone who is thinking about filing for divorce in Michigan has probably heard about the potential financial consequences. For younger people who get divorced, it is easier to get back on track financially, yet divorce does often take a toll on finances. For example, getting divorced means that you will no longer be splitting the costs of a mortgage (or rent payment) and bills, and the division of marital property can leave you with less savings and fewer investments. The financial difficulties of divorce can be more pronounced when couples get divorced after retirement. You might have read about how, for instance, “gray divorce” can leave retirees with a limited amount of post-retirement income, resulting in a need to return to the workforce.
While divorce can result in financial difficulties that are either temporary or long-term for some people, there are also some financial benefits of divorce. An article in U.S. News & World Report discusses some of the little-known financial benefits of getting divorced. We will say more about some of the ways that getting divorced can actually help with financial issues.
Freedom to Manage Your Finances
One of the financial benefits of divorce is the freedom to manage your finances. Often, married couples share accounts and make joint decisions about how money will be spent. Married couples also tend to determine together what a family budget will look like. After your divorce, you can decide for yourself how to prioritize a budget and how money will be spent.
Access to Retirement Funds
In most situations, if you take an early withdrawal from your retirement account, you will pay a substantial penalty. However, getting divorced may allow you to take an early withdrawal from your retirement account without paying a penalty. If you enter into a qualified domestic relations order (QDRO) in your divorce, you may be allowed to take an early withdrawal from your retirement account without the percentage fee that typically attaches. You should keep in mind, however, that you will still be required to pay taxes on the money you withdraw.
Possibility of Better Investment Options and Returns
As the article points out, a recent study conducted by Fidelity Investments shows that “men usually take a more aggressive approach to investments and take more risks,” which can mean, alternately, that women tend to take a less aggressive approach to investments and to take fewer risks. In the long run, given that women who are newly divorced will be making decisions individually about investments, they could make less risky decisions and could end up seeing bigger returns.
College Funding for Children
If you have minor children from the marriage who will soon be applying for college, having divorced parents actually could help your kids to receive a better financial aid package. Typically, financial information gets collected from the custodial parent. While child support and spousal maintenance received by that parent need to be included in student financial aid applications, the student ultimately could be eligible for more funding.
Contact a Michigan Divorce Attorney
Do you need assistance filing for divorce in Michigan? Do you have questions about how divorce will affect your finances? A dedicated Michigan divorce attorney can speak with you today. Contact the Law Offices of Michael A. Robbins for more information about the services we provide to clients in Michigan.
Recent Posts
Archives
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- May 2016
- April 2016
- March 2016
- February 2016
- December 2015
- November 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- March 2015
- February 2015
Categories
RSS Feed
Let us help you

Contact The Firm
3910 Telegraph Road
Suite 200
Bloomfield Hills, MI 48302
Phone: 248-646-7980
Fax: 248-646-7989