Overcoming the Difficulty of Divorce During Tough Economic Times

December 18, 2010 (Press-News.org) While money is one of the top reasons couples divorce, it is also becoming one of the top reasons couples don't actually get divorced. During tough economic times, many people are finding that splitting up can be financially burdensome. As a result, many couples continue to live together even after their marriages have crumbled. However, a professional may help eliminate many of the reasons people delay getting divorced.

Excuses for Putting Off Divorce

Home ownership makes divorce difficult. One major reason is that a depressed housing market has left countless couples upside down in their mortgages. Selling the house outright could leave both spouses with mortgage debt and a short sale (if approved) could have a negative effect on credit. Neither option is desirable.

Dissolving marriages involving children has the added complication of future expenses such as health care issues or college tuition. In tough times, many people prefer not to even think about paying those high costs down the road.

Moreover, if one or both spouses own a business, how will those assets be divided in a divorce? What about one spouse's retirement fund? The laws affecting division of these assets can have long lasting effects on both parties.

While these may seem like valid reasons to postpone a divorce, a skilled divorce attorney can help you through what is already a trying process to ensure your financial security now and into the future. But even with professional help, it's important that potential divorcees understand the basic divorce laws in their state to work together with their attorney.

Michigan Divorce Basics

In Michigan, a divorce requires a showing by at least one spouse that "there has been a breakdown of the marriage relationship to the extent that the objects of matrimony have been destroyed and there remains no reasonable likelihood that the marriage can be preserved." Nothing more than this language from the Michigan statute is required as grounds for divorce.

For a Michigan court to have jurisdiction over a divorce, the filing spouse must have lived in Michigan the six months before filing. The spouse filing the petition for divorce is the plaintiff and the other spouse is the defendant.

Once a petition is filed, a summons is issued, parties are given notice of the petition and court hearings are set. During the process, several potential issues must be resolved regarding the division of assets, child support and custody, spousal support, etc.

If children under 18 are involved, there is an approximate six month waiting period before the court will finalize the divorce. With no children, the waiting period is only 60 days. Once all the property, child support, spousal support, etc. are worked out, the court will enter an order dissolving the marriage.

Dividing the Assets

Michigan is an "equitable division" state based on "marital property" rules. Simply put, what is acquired during the marriage becomes marital property and belongs to both spouses. Equitable doesn't mean equal, it means what the court thinks is fair. In a divorce, the court determines the value of marital assets and divides them in an equitable fashion unless there is another agreement between the parties.

Because Michigan is a marital property state, interest in a business acquired during a marriage (even if only one spouse is managing the business) may be equitably divided. However, business asset valuation and division is a complex process, one that should not be undertaken without the help of a professional to protect the parties' interests.

The division of business assets often raises the issue of "double dipping" by a non-owner spouse. That is, the non-owner spouse receiving a portion of business assets, then asking for spousal support from the owner spouse's portion of the business assets.

Further complicating asset division is that any vested retirement benefits or contributions to a retirement system made or accrued during a marriage become part of the marital estate. In other words, if the benefits were earned during the marriage, they are part of the assets the court can equitably divide.

Certainty in Uncertain Times

Divorce is not a pleasant process for anyone involved. The complexity of dividing assets and agreeing to future payments is only made worse by troubled economic times. However, the uncertainty of divorce (especially in an equitable division state) can be lessened with the help of a divorce professional. Because every case is unique, contact a Michigan attorney specializing in divorce to evaluate your specific situation, discuss your options and protect your assets.

Article provided by Dart Drouillard PC
Visit us at www.ddpclaw.com