David R. Bruegel, P.C.David R. Bruegel, P.C. brandDavid R. Bruegel, P.C.
Call Us Today
Local : 517-833-4196
Our Practice Areas

Financial planning for post-divorce life

We All Need A Champion

Michigan couples who are ending their marriages and have a variety of assets might also need to carefully plan for financial changes during the process, after the divorce has been finalized and even in how the divorce might affect their estate planning. Anticipating these issues in advance might prevent some mistakes that might become very costly in the future.

In a high net worth divorce, a property settlement might include transferring of financial assets that might also have tax implications. Generally, for tax purposes, the transfer of cash and other assets between spouses has no taxable effect, as long as it can be shown that the transfer was a result of the divorce.

There are assets, however, that might be liable for capital gains taxes once the spouses attempt to divide them. These include artwork, mutual funds and stocks and bonds that the couple might have acquired together over the course of their marriage. There are special Internal Revenue Service rules regarding the sale of a principal residence that could affect a property settlement, so people who are in this position might want to have their attorneys pay special attention to this aspect.

Retirement funds can be another area where tax implications can have an impact. These accounts can be treated as marital property and therefore both spouses will have the right to receive some of the funds. In most cases a qualified domestic relations order will need to be prepared and submitted to both the court and the plan administrator. The failure to do so can result in adverse tax consequences, and a family law attorney can be of assistance in this regard.

No Comments

Leave a comment
Comment Information
  • Expert Network | Distinguished lawyer | David R Bruegel
  • National Association Of Distinguished Counsel | Nation's Top One Percent | NADC
  • This Attorney is Lead Counsel Rated. Click here for more Information.Elder Law & Estate Planning

Share Your Concerns.

The first step toward tackling any legal problem is to talk it over with a trusted professional. Discuss your legal worries with attorney David Bruegel. Call or send an email to get started.

Send Your Information Today

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

David R. Bruegel, P.C.

Attorney Image
Avvo Rating 10.0 Superb Top Attorney General Practice Peer Review Rated For Ethical Standards & Legal Ability AV Preeminent Martindale-Hubbell from LexisNexis

Contact Information

155 W. Maple St.
P.O. Box 316
Mason, MI 48854

Phone: 517-833-4196
Fax: 517-676-6035
Map & Directions

Review Us