Why Are Some Divorces So Costly? |
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What drives divorce costs dramatically higher is one thing and one thing only: disagreement between the parties. If the husband and wife can agree on the key issues, such as property division, custody, and child support, all that remains is drafting of documents. But when there are battles, negotiations, debates - all those things take time. And as noted above, the lawyers are charging by the tenth of an hour. So, if both sides are represented by attorneys (and they should be!) a debate over who gets to keep the painting in the living room or a wedding present can quickly become far more expensive than the painting or buying a new toaster oven. That's not to say that key issues and disagreements shouldn't be fought out, either in negotiation or litigation, but simply a word to the wise. It often makes sense to settle economic issues rather than litigate them.
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Michigan Family Law and Dividing an IRA |
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Often times in divorce cases IRAs need to be equalized. Clients always worry about tax counsequences. That is why it is always important to get the Client's CPA involved. But an IRA transfer does not have to have tax consequnces for parties that are getting divorced.
The tax treatment/distribution rules distinguish inherited IRAs from regular IRAs, but the assignment of an IRA, or portion thereof, to a former spouse pursuant to divorce is the same. The transfer is a tax-free transfer under IRC 408(d)(6). I'm pretty sure the tax treatment follows the IRA and the new owner-former spouse takes the IRA with the characterization the IRA had before it was transferred to her/him.
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Family Law and The Top 50 Divorced Cities |
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The Daily Beast posted a list of the 50 U.S. "divorce capitals." The rankings noted the percent of the city's total divorced population and the city's 2009 divorce rate. The top five:
1) Panama City, Fla., with a total divorced population of 15.5 percent and a 4.3 percent 2009 divorce rate.
2) Sierra Vista, Ariz., with total divorced population of 13.6 percent and a 5.5 percent 2009 divorce rate.
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Michigan Family Law - Top 5 reasons couples divorce |
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I was reading an article recently on divorces. These are the top 5 reasons they believe couples divorce:
- Different values and interests
- Abuse — physical and emotional
- Alcohol and drugs
- Infidelity
- Career-related conflict
What do you think? |
Contact With Your Children After Your Divorced is Final |
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When one thinks of custody and visitation in a divorce case, the first thing that most likely comes to mind is: "When will I see my children?" An important aspect of visitation is not only when you will see your children, but also when you will be able to speak to them during the times in which your former spouse has custody/visitation. For many parents this is a no brainer, the children can speak to the other parent as often as they would like. In more adversarial divorces, however, this is not always the case. Sometimes one parent may feel that the other parent calls too often, disrupting his/her visitation or custodial time, or calls at inopportune times, when the children are doing homework or asleep.
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Divorce in a Bad Economy |
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Conventional wisdom says that divorce rates increase as the economy decreases. The reason for this is simple: Some couples who were staying together because the money was good are finding themselves arguing more about their finances and finding fewer reasons to stay together; other couples are simply pushed to the edge by economic stresses. But in the current bad economy, the opposite is actually occurring. More couples who were considering divorce are deciding to stick it out, either in hopes that the economy will soon recover or that their relationships will.
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Spousal Support Factors |
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Our office receives phone calls from clients about whether he/she will have to pay for spousal support or whether he/she will be able to receive spousal support. They are not set guidelines for spousal support. Our firm has a computer program that can estimate what the potential spousal support dollar amount and length of period of time may be. The court will take a number of factors into consideration.
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Michigan Divorce Residency Requirements |
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Our office often gets phone calls from potential divorce clients that have just moved to Michigan. There is a residence requirement in Michigan in order to get divorced. You must live in Michigan for 180 days prior to you filing your complaint for divorce. Also, you must reside in the county in which you file for at least 10 days before you file your complaint for divorce.
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Legal Separation in Michigan |
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I often get phone calls from people asking what is the difference between a legal separation and a divorce? For many people it does not make sense to get a legal separation. A separation simply means to live a part from your spouse. You do not need to file court papers to separate. The law does not require you to live with your spouse. However, separating from your spouse may affect your legal rights.
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You Should Discuss Finances Before You Get Married |
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I believe the number one reason a marriage ends up in divorce is finances. Often times couples never have the important discussion about each other finances. Those couples who are planning on getting married should have a conversation about finances. There are several topics that should be discussed.
- income
- assets
- debts
- expenses
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