Getting a divorce can be a long, stressful process. When tensions are high, you may make avoidable mistakes that increase conflict and make the process more expensive.

Here, an experienced family attorney discusses the most common mistakes made during divorce proceedings and how to avoid them.

Forgetting About Taxes

Getting a divorce can drastically affect your taxes, from filing status to who can file dependents. If you are still married at the end of the year, the IRS will consider you married, and you must determine the best filing status for your situation. The What is My Filing Status tool can help you decide if married filing jointly, married filing separately, head of household, or single status is right for you.

If you have dependent children, only one parent can claim them as dependents on their taxes if you file separately. Typically, the IRS allows the custodial parent to claim the children as qualifying dependents. The child must live with you for a more extended period of time to be considered the custodial parent. It’s important to remember that child support payments are not tax deductible by the payer and are not taxable income.

Hiding Marital Assets

Hiding marital assets can not only result in the loss of more of your shared property but can also result in severe legal and financial penalties. Michigan is an equitable distribution state, so you must disclose all assets and marital property during the discovery process so the court can make accurate rulings on alimony and child support.

If you are caught hiding assets, the judge can award your spouse 100% of the hidden assets and grant higher alimony payments. The judge may hold you in contempt and force you to pay fines. You may even face criminal fraud charges for hidden assets.

Failing to Change Your Estate Plans

With so many factors to consider and decisions to make, it can be easy to forget about your estate planning in the midst of a divorce. However, failing to change your estate plans can be one of the biggest mistakes in the long run. 

When getting divorced, it’s essential to make the following changes to your estate plan:

• Wills: A divorce decree will automatically remove your spouse’s claim to your assets, but these assets will be designated to alternative or residuary beneficiaries. You should update your estate plan to ensure your assets go to your intended beneficiaries.
• Power of Attorney: Michigan law will revoke your ex-spouse’s medical and financial powers of attorney only when the divorce is final. You may want to remove your ex and designate a new power of attorney while the divorce is pending, so they cannot make decisions on your behalf.
• Trusts: Living and revocable trusts are not automatically changed after a divorce, so you will need to remove your ex-spouse as a trustee, for example.

Talk to the experienced family law attorneys at JAD Law

When you’re getting a divorce, an experienced family attorney can help you avoid these common mistakes and negotiate the best possible agreement for your family. JAD Law is here to help.  Contact JAD Law today to schedule an appointment.

JAD Law serves several counties across Metro Detroit, Michigan, including Macomb, Oakland, St. Clair, and Wayne counties.