Profitt Report: What to know about your money when marriage ends
It’s not an easy subject to talk about, but communicating could make divorce a lot easier. It’s a big decision both emotionally and financially. There’s a lot at play in a divorce, a lot of tough emotions. However, we spoke with financial professional Mindy McIntosh and she said even though it’s hard, try to be all business about your budget.
January is when divorce filings start to pick up according to research from the University of Washington.
“You really need to make sure you don't move too fast. To me, it's for several reasons. Can they work it out? Can they receive counseling?” McIntosh said.
If not, still, take it slow she said. Start by taking inventory.
“All the assets, both assets today and future assets,” McIntosh said.
Here’s why future money matters: some states split marital assets 50-50 but Michigan isn’t one of those states. Here, it’s more complicated and depends on varying factors.
“What did you come into the marriage with? How many years were you married? Did you have 401ks, IRAs, pensions,” McIntosh said.
McIntosh said don’t forget about taxes: the tax amount changes the value of your assets. Next, disconnect your accounts.
“Did you change beneficiaries on your accounts, did you make sure you're not on any bank accounts together any longer, what do you have meshed together still that you need to make sure those ties are cut so there's no joining your savings,” she said.
This is usually a tough process, so McIntosh said you’ll want some third-party opinions to help.
“If you're splitting assets and you're splitting home and jewelry and things that are important possessions to you, you really want to have someone come in and appraise that so you're not putting a personal twist or personal emotion on that and maybe valuing that as something that isn't truly realistic,” she said.
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