Archives for September 2023

Can I Buy A House During My Divorce?

September 25, 2023 By Laurie Schmitt

Your divorce is pending and you want to purchase a new house. The issue you will find yourself in is whether your new house will be considered marital property or not.

WHAT DOES MICHIGAN LAW SAY?

In Michigan the law supports that property purchased during the marriage in presumed to be marital, even if acquired after separation or during a pending divorce. All homes purchased during the marriage is technically considered part of the martial estate. Consideration of the source of the funds used to acquire the property (contribution) may mean the other party is entitled to some portion of that property – or none at all.

WHAT IS THE REAL ISSUE?

The issue the court will look at is the source of the down payment made to purchase your new house. Was the down payment made with marital funds? If you are using marital funds for your down payment then the property becomes marital.

If the source of the down payment is coming from your settlement of the marital assets, then it is not likely that your spouse can argue contribution. If your down payment was from your share of the marital funds, then there is no contribution from your spouse, and you would retain the entire interest in the house. But if the down payment came from marital funds, your spouse could argue for compensation of those funds, as it was contribution of marital funds used for the down payment.

HOW DO I PROTECT MYSELF

If you must purchase a house during your divorce, play it safe and obtain a stipulated order (that will be signed by the judge) stating that the purchase of your new house will not be considered a marital asset, is not an asset to be divided in the divorce, and that your spouse has no ownership or equity interest in the property. If you are using funds from the settlement of your divorce (or are using funds that will be considered an advancement of your settlement), make sure the stipulated order details this.

SUMMARY

If you don’t protect yourself, your spouse may have an interest in the property, claiming it as a marital asset. Once again, any property purchased during the marriage can be considered marital property. How your property is titled is not dispositive of ownership. This means that is does not matter whose name is on the deed, it can still be considered a marital asset. The name on the deed is not controlling. It is best to have a stipulated order designating your new home as your separate property before the purchase is made.

ASSET DIVISION. GRAND RAPIDS COLLABORATIVE DIVORCE ATTORNEY SERVING WEST MICHIGAN.

Divorce can be emotional and messy, and it’s natural for anyone going through a divorce to want to protect their financial interests. Maintaining an objective view of the situation can be difficult when you are struggling with complex emotional issues and personal tensions in your divorce. As an experienced Michigan divorce lawyer, Schmitt Law, PLLC can help you maintain control over your property in divorce, and against taking on responsibility of debt that may not be marital. We will provide detailed guidance and support throughout every step of the process. The right attorney can increase the likelihood of you securing a favorable outcome to property and debt division in your divorce.

Laurie Schmitt of Schmitt Law, PLLC has years of experience representing clients in a wide range of difficult divorce cases. We understand the financial concerns our clients often have regarding their property ownership rights and the doubts they often experience when it comes to property division in divorce. If you are seeking a divorce, contact us today to schedule a consultation. Contact Schmitt Law, PLLC online or by calling (616) 608-4634 for a consultation today.

Our office is located at 401 Hall Street SW, Suite 112D, Grand Rapids, MI 49503.

Setting Goals For Your Divorce

September 18, 2023 By Laurie Schmitt

If you are contemplating divorce, or have recently filed for divorce, you may want to start setting goals to assist you in getting through the divorce process. The following are a few goals for your consideration:

ASSET LIST

Make a list of all of your assets. Have you and your spouse already decided who will keep what asset? Have you and your spouse agreed to the values on your asset list? Do you need to get appraisals of these assets?

BUDGET

Create a new budget. List your income and your new expenses. If you are unsure what your new expenses will be, do the best you can to use legitimate numbers. This will assist you in knowing what you have to spend and what you may need once the divorce is complete.

EXPENDITURES

Be conservative with your spending while your divorce is pending. It’s not smart to create new debt that you will take with you after the divorce. If you or your spouse has already filed for divorce, and you charge up new debt, it’s not likely that new debt will be considered marital. What that means is you will be solely responsible for the debt after the divorce. Don’t put yourself in a financial hardship position post-divorce by creating new debt.

PROPERTY AND AUTO INSURANCE

Have you and your spouse discussed division of your insurance policies? As you may not know who is retaining the house, or if you and your spouse will sell the house, it may not be time to make any changes to your homeowner’s policy. However, it may be time to discuss division of your auto insurance policy and come to agreement of the date that the division will take place.

HEALTH INSURANCE

Once the judgment of divorce is signed by the judge, and you are officially divorced, you will no longer qualify to remain on your spouse’s health insurance plan. It is best that you address the health insurance issue early in your divorce, as it may take a few months to find a plan, and for your new health insurance policy to go into effect. Too many clients wait until the last minute to address health insurance. And many find themselves without health insurance post-divorce. Address this issue early, so that you are not uninsured at the end of your divorce.

COBRA INSURANCE

If you are transitioning from your spouse’s health insurance policy to your new health insurance policy, you can always pay for COBRA from your previous insurer so that you do not have a lapse in health insurance coverage. You will be able to maintain your previous insurance for 18 months through COBRA. However, as this can be pricey, you want to move as quickly as possible to get your new policy started.

PASSWORDS

As we all do, you most likely have many passwords to several accounts. For your protection, you should change your passwords to accounts that are solely in your name. And this is especially true to your email and social media accounts. You may want to create a new email account used to communicate with your divorce attorney.

CREDIT REPORTS AND CREDIT ACCOUNTS

Request a copy of credit reports from all reporting agencies. That way you are aware of all accounts (sole and joint) that are under your name and can make sure you close all joint accounts before the divorce is completed. If you intend to keep any joint accounts post-divorce, you will need to remove your spouse’s name from those accounts. And the same goes for accounts your spouse intends to keep. Make sure your name is removed from all accounts they are keeping.

CONSIDERING DIVORCE? LEARN YOUR OPTIONS WITH SCHMITT LAW, PLLC. GRAND RAPIDS DIVORCE ATTORNEY SERVING THE WEST MICHIGAN AREA.

Contemplating a divorce can be one of the hardest decisions to make in life. There are many complexities involving the divorce process, making it overwhelming for most. However, know that you are not alone, and help is available. At Schmitt Law, PLLC we are here to answer your questions, ease your concerns, and protect your rights. To book a consultation, contact Schmitt Law, PLLC online or by calling (616) 608-4634. Our office is located at 401 Hall Street SW, Suite 112D, Grand Rapids, MI 49503.

Substance Abuse and Fighting For Custody/Parenting Time

September 11, 2023 By Laurie Schmitt

Fighting for custody and parenting time of your children is a hard enough road. But, if you have an ongoing drug or alcohol problem, it makes it a much more difficult to navigate your case.

WHAT DOES A JUDGE LOOK AT

What will your judge look at in determining your custody case if the other parent is alleging you have an alcohol or drug problem? The following are just a few of the things a judge will review before granting you custody and parenting time if the other parent is alleging you have an alcohol or drug issue:

What type of issue are you having: alcohol or drugs?
Does the other parent have clear documentation of your alcohol or drug problem?
If you have a drug problem: what is your drug of choice?
How long have you been battling with your addiction?
Are you currently treating with a counselor?
Are you attending AA or NA meetings?
How often do you attend AA or NA meetings?
Do you have a sponsor?
What will your sponsor say about you if asked to testify?
Have you sought treatment at an alcohol or drug treatment facility?
How long have you been clean/sober?
What proof can you provide of your sobriety?
Can you pass a drug test today and throughout your custody case?

WHAT CAN HAPPEN IN YOUR CASE

What may happen in your custody and parenting time case if the other parent is alleging you have an alcohol or drug problem? The answer is: it depends. However, the following are just a few of the things the judge may require from you if it can be proven you have an ongoing alcohol or drug problem.

You may be subject to supervised parenting time. This could be with a family member, or at an agency. If it is with an agency, you may be solely responsible for the cost.
You may be required to take drug and/or alcohol tests. These drug/alcohol tests may be solely at your cost.
You may be required to purchase a device that tests your sobriety prior to and/or during your parenting time.
You may have your parenting time suspended if you are unable to successfully pass tests, and are unable to remain clean and sober.
If may not be given overnight parenting time.

WHAT YOU NEED TO DO

You need to be prepared to prove your sobriety.
If you are not attending AA or NA meetings, or not attending regularly, you need to attend meetings and do so on a regular basis.
You need to get a sponsor, and build that relationship so that you can maintain your sobriety.
You need to seek appropriate counseling for your alcohol or drug addiction.
Stop lying to yourself and others. You need to stay completely sober. This means you can’t substitute one addiction for another and say you are clean and sober. As an example of a common statement client’s make: I had an opiate addiction, but now only smoke marijuana or drink alcohol. I am clean and sober. Are you really clean and sober?

In summary, your sobriety is directly related to the best interest of your child(ren). If you can’t or won’t maintain your sobriety, it will have a significant impact on what type of custody you are granted, and the amount of parenting time you will get to exercise. Only you can do the work to maintain your sobriety and fight for your rights as a parent.

CHILDREN ARE FIRST. GRAND RAPIDS COLLABORATIVE DIVORCE ATTORNEY SERVING KENT, OTTAWA, AND ALLEGAN COUNTY.

At Schmitt Law, PLLC we understand that the interests of your children always come first. Whatever your situation, Schmitt Law, PLLC is experienced, sympathetic and willing to help you achieve the best outcome for your entire family. Contact Schmitt Law, PLLC today by completing our online contact form, or calling us at (616) 608-4634 to schedule a consultation. Our office is located at 401 Hall Street SW, Suite 112D, Grand Rapids, MI 49503.

I Don’t Want To Take My Spouse For Everything They’re Worth

September 4, 2023 By Laurie Schmitt

Getting a divorce is a difficult process. And you’re looking for your divorce to be uncontested, fair and equitable. You’ve made the decision you don’t want to fight. But, making the decision that you don’t want to fight should never equal walking away from an appropriate share of the marital estate

Perhaps through the divorce process your spouse is stating you’re not entitled to certain assets. Or it may be that you don’t feel you are entitled to certain assets. As examples, you feel if you ask for a portion of your spouse’s 401K, or for a portion of the equity in the house, you’re “taking them for everything their worth”.

The reality is that both you and your spouse built your marital estate while you were married. You each contributed to the marriage. And therefore, the marital estate should be divided fairly and equally between you and your spouse. And even though you may feel that asking for your fair share of the marital estate is too much, or makes you feel you are taking your spouse “for everything their worth”, it’s what is fair and equitable.

If you decide to walk away from obtaining what you’re entitled to you in your divorce, you may suffer buyer’s remorse in the future. And after the divorce is completed it’s too late to change your mind! Once the Judgment of Divorce has been signed, and you’re officially divorced, you will not be able to reopen your case for a review of the property distribution. It’s only in vary rare cases that a judge would entertain review of property distribution after the divorce is finalized. And assume your case is not one of those exceptions.

As both you and your spouse will need to re-build your financial future, you need to analyze what is best for you. Before you make financial decisions that you may regret, decisions that are final, and decisions that will impact your future, seek a consultation with an experienced family law attorney to discuss your options.

GRAND RAPIDS COLLABORATIVE DIVORCE ATTORNEY SERVING KENT, OTTAWA, AND ALLEGAN COUNTY.

Archives for September 2023

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