Collaborative Divorce

How to Navigate the Financial Issues During the First Days of Your Divorce

October 6, 2022 By Laurie Schmitt

You’ve decided to file for a divorce. What financial issues should you be most concerned with during the first few days of your divorce process? Before you file, strategically lay out a plan with your attorney as to how you will handle the finances, and protect the assets of the marriage.

The following are financial issues that should be addressed before (or closely after) you have filed for your divorce.

DO NOT ADD TO YOUR DEBT: Make sure you and your spouse do not acquire new marital debt. It’s hard enough to address division of debt in a divorce, without new debt being created. You certainly do not want more debt to be acquired during the divorce, unless both you and your spouse agree that new debt is necessary.

PRESERVE YOUR CREDIT: Make sure all marital debt is being paid, and being paid on time. Come to a written agreement with your spouse as to how the marital debt will be paid. If you are unable to come to a written agreement, then seek a court order to establish how the marital debt will be paid. It is imperative that this written agreement or court order is signed at the onset of the divorce to ensure on-time payments of the marital debt. You do not need to destroy your credit during the divorce process with failure to pay or late payments.

PROTECT YOUR ASSETS: Even if you and your spouse are getting along, it’s best to enter into a stipulated mutual restraining order to protect your assets and liabilities. If you are unable to agree, your attorney should obtain a mutual restraining order when your divorce case is filed. A mutual restraining order provides protection to both parties by prohibiting parties from disposing or hiding the parties’ assets. By having the court sign a mutual restraining order, it alleviates the concerns that either party may do so legally. A mutual restraining order will protect anything you require it to protect, and can be drafted to meet the specific needs of the parties.

KEEP FINANCES STATUS QUO: The goal is to keep your finances status quo until a temporary or permanent written agreement can be reached. Parties should enter into a temporary order on how the finances will be handled (what bills will be paid, when will they be paid, and who will pay them) until a final agreement can be reached in the divorce case.

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

If you filed for divorce, or are considering filing in the near future, contact the Michigan family law attorney at Schmitt Law, PLLC. We have extensive experience handling all types of Michigan divorce cases and the related issues that frequently come up in the divorce process, including spousal support, child custody, and child support. We provide custom-tailored legal advice and solutions for clients. To learn more about how we can help you through the divorce process, contact Schmitt Law, PLLC today by completing our online contact form, or calling us at (616) 608-4634 to schedule a consultation.

The 4 Biggest Roadblocks to Negotiating a Fair and Equitable Divorce Settlement

October 3, 2022 By Laurie Schmitt

FEELINGS. During a divorce it’s natural for you to have feelings of anger, frustration, resentment, and sadness. And if you don’t address your feelings, it makes it hard for you to move forward and make the important decisions necessary to complete your divorce. Seek a professional counselor to assist you in working through your feelings so that you can move forward, conclude your divorce, and move on with your new life.
NOT UNDERSTANDING THE TRUE VALUE OF REAL PROPERTY. There’s no reason to guess what the value of your real property may be. It’s simple…you hire an appraiser to perform an appraisal. If you believe obtaining an appraisal isn’t necessary, or too expensive, you may be leaving thousands of dollars on the table in your settlement. Why guess? Let’s get a professional to tell us what your real property is worth. An appraisal is worth every penny as it prevents you from overpaying your spouse in equity or saves you from losing thousands in your pocket.
NOT UNDERSTANDING THE VALUE OF RETIREMENT ACCOUNTS. Why would you take your spouse at their word. Or, why would you accept rough estimates of the value of your spouse’s retirement accounts. The settlement of your divorce now becomes a business transaction. And good businesspeople to not guess. Have your attorney request up-to-date statements for all of your spouse’s retirement accounts. Without exact information as to value of each account, it is impossible to reach an agreement that is fair and equitable for you.
FAILURE TO DISCLOSE. If you or your spouse are unwilling to be truthful in disclosures, it once again makes it impossible to discuss division of assets. Failure to disclose comes in many forms such as under valuing or failing to list assets on a financial affidavit. The failure to disclose assets by you or your spouse makes it impossible to arrive at a fair and equitable resolution of your divorce case.

MAKE SURE YOU ARE RECEIVING WHAT IS FAIR. GRAND RAPIDS COLLABORATIVE DIVORCE ATTORNEY SERVING KENT, OTTAWA, AND ALLEGAN COUNTY.

Do you know what the value of your marital property is? Determining the value of your marital property can be one of the most complex issues in your divorce. You have the right to expect a fair and equitable property division in your divorce. Schmitt Law, PLLC has the knowledge and skill to resolve financial matters using mediation and the collaborative approach, saving you time, money, and stress. To discuss your circumstances and legal options, contact Schmitt Law, PLLC online or call (616) 608-4634 to schedule a consultation.

The Divorce Process

September 27, 2022 By Laurie Schmitt

THE VERIFIED COMPLAINT FOR DIVORCE

To start a divorce proceeding, you must file a Verified Complaint for Divorce and Summons in the county where you reside. In a Verified Complaint for Divorce the party filing the divorce (Plaintiff) will be required to state the following:

That they have resided in Michigan for 180 days or more
That they have resided in the county they are filing the divorce action in for 10 days or more
The date, city, and state where the marriage was performed
Name and birth dates of children
Date of separation (if no longer living together)
Identify any other county or state that has jurisdiction over the children
Identify any other county of state that the party has another child custody proceeding in
Identify any person not a party to the divorce who has physical custody of the children or claims legal or physical custody or parenting time rights with the children
List any information that could affect a child custody proceeding, including a proceeding for enforcement, a domestic violence proceeding, a protective order, termination of parental rights, or adoption in any state
A claim for spousal support (if you are requesting spousal support from your spouse)
A claim for attorney’s fees (if you are requesting your spouse pay for your attorney’s fees)
And 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”

The Verified Complaint for Divorce will be signed by the Plaintiff, in front of a notary public.

FILING THE DOCUMENTS WITH THE CLERK OF COURT

Once the Plaintiff has reviewed and signed the Verified Complaint for Divorce, the Verified Complaint for Divorce and Summons is filed with the clerk of the court, and the Summons is issued. At the time of filing, there will be a filing fee paid to the clerk of the court. This filing fee varies (a divorce with no minor children is less to file than a divorce with minor children).

THE SUMMONS

The Summons is a document that is filed with the Verified Complaint for Divorce and served on the Defendant (responding party to the divorce). The Summons notifies the Defendant that an action has commenced against them and sets forth the time limits within which the Defendant must file an answer.

The Summons also identifies the date the Summons was issued and the expiration date of the Summons. If the Summons is not served on the Defendant before the expiration date, the Summons is no longer valid.

SERVICE OF THE DIVORCE DOCUMENTS

After the Verified Complaint for Divorce has been filed with the clerk of the court, and the Summons has been issued, both documents must be served on the Defendant. Service can be in person (voluntary or by a process server) or by mail.

TIME LIMITS FOR DEFENDANT TO FILE AN ANSWER

After the Defendant is served with the Summons and Verified Complaint for Divorce they will have:

21 days to file a written answer with the court – if served personally
28 days to file a written answer with the court – if they were served by mail or served outside of the state

AFFIDAVIT OF SERVICE

After the Defendant has been served, the Plaintiff must prove to the court that the Defendant has been served with the Verified Complaint for Divorce and Summons.

The Plaintiff “proves” to the court service has been completed by filing an Affidavit or Service with the clerk of court. The Affidavit of Service shows the court the name of the person who served the Defendant, as well as the date, time, and location of service of the Defendant.

If the Defendant accepted service voluntarily, an Acknowledgment of Service must be completed and filed with the court.

DEFAULT

After the Verified Complaint for Divorce and Summons are served on the Defendant, they must file an answer with the clerk of the court within specific time limits (see “Time Limits for Defendant to File an Answer”). If the Defendant fails to file an answer within the time allowed, a default will be entered against them. After the default has been entered by the court, the Plaintiff can proceed with the divorce case, and request the court for a default judgment to be entered (after the required statutory wait period).

WAITING PERIOD

Michigan law establishes waiting periods depending on the individual circumstances.

If you do not have minor children of the marriage: There is a two-month waiting period after the filing of the Verified Complaint for Divorce has been filed.

If you have minor children of the marriage: There is a six-month waiting period after the after the filing of the Verified Complaint for Divorce has been filed.

A Judgment of Divorce cannot be entered earlier than these established times.

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

If you need to know more about a Michigan divorce, including how to file for a divorce, contact an experienced attorney, Laurie Schmitt at Schmitt Law, PLLC. Schedule your consultation today with a dedicated attorney. We look forward to speaking to you and being your advocate during this crucial time in reframing your life. Contact Schmitt Law, PLLC online or call (616) 608-4634 to arrange a consultation.

Divorce and Confidential Settlement Agreements

September 20, 2022 By Laurie Schmitt

To complete a divorce, a judgment of divorce must be entered with the court. Once the judgment of divorce is signed by the judge, it becomes a public record. Anyone may go to the clerk of the court and request to review and copy the documents contained in your divorce file, including your judgment of divorce.

How can divorcing couples protect their privacy? The answer: through a confidential settlement agreement.

WHAT IS A CONFIDENTIAL SETTLEMENT AGREEMENT?

Often times, parties want the provisions of their divorce agreement to remain confidential from the public. Keeping the terms of your divorce agreement private can be achieved through a confidential settlement agreement. And as the term implies, that is exactly what a confidential settlement agreement does – keeps your private life away from the public.

WHAT IS THE DIFFERENCE BETWEEN A JUDGMENT OF DIVORCE AND A CONFIDENTIAL SETTLEMENT AGREEMENT?

A judgment of divorce is a public document whereas a confidential settlement agreement is a private contract. It is important that the parties’ assets and liabilities (and division thereof) be clearly addressed. Because a judgment of divorce is public, it should never contain sensitive information such as bank account, credit card, or retirement account numbers. However, because a confidential settlement agreement is not filed with the court, it can contain this information.

HOW DOES A CONFIDENTIAL SETTLEMENT AGREEMENT WORK?

A confidential settlement agreement is a binding contract between the parties that is merged and incorporated into the judgment of divorce. This means that the actual document and terms identified within remain confidential (as the actual confidential settlement agreement is not filed with the court). The parties and their attorneys retain copies of the confidential settlement agreement. The only time that a confidential settlement agreement is filed with the court is if one party violates the terms, and the other party seeks assistance from the court in enforcing the terms.

AN ATTORNEY WHO UNDERSTANDS YOUR CIRCUMSTANCES. GRAND RAPIDS COLLABORATIVE DIVORCE ATTORNEY SERVING KENT, OTTAWA, AND ALLEGAN COUNTY.

At Schmitt Law, PLLC, our clients benefit from years of experience. We treat every client as an individual, taking the time to understand your unique situation, so as to best advise you on the steps you should take. Whatever stage your life is at, you can trust Schmitt Law, PLLC to guide you through the legal process with expertise and compassion, because we understand that family comes first. Contact Schmitt Law, PLLC today by completing our online contact form, or calling us at (616) 608-4634 to schedule a consultation.

The Marital Home and Divorce – Common Questions

September 16, 2022 By Laurie Schmitt

You and your spouse own a home, and you’ve decided to file for divorce. You have concerns about the marital home, the equity, and what you may be entitled to receive in the divorce.

The following are the most common questions asked of Schmitt Law, PLLC during an initial interview:

WHAT IF THE HOME WAS PURCHASED BEFORE THE MARRIAGE?

The answer to this question is how close was the home purchased before the marriage. If it were purchased close to the marriage, it is most likely marital property. And, if at the time of the marriage there was little to no equity, then your spouse could not claim the equity to be separate property (because there was no equity at the time of the marriage).

If one spouse purchased the home well before the marriage, and can show the court there was equity in the home at the time of the marriage, then they may claim that portion of the equity as separate property. What this means is that they can ask the court for a credit for the portion of the equity that existed at the time of the marriage. But the burden is on your spouse to show (1) the value of the house at the time of the marriage, and (2) that there was indeed equity at the time of the marriage.

WHAT HAPPENS IF MY SPOUSE’S NAME IS THE ONLY ONE LISTED ON THE DEED TO THE MARITAL HOME?

How a property is deeded is not dispositive of ownership. There are various reasons why one spouse’s name may not be on the deed. Simply because only one spouse is listed on the deed does not mean the home is not marital property. The quick answer is if the home was purchased during the marriage, it will be subject to division in the divorce by the family court.

WHO GETS CREDIT FOR THE DOWN PAYMENT ON THE MARITAL HOME?

If the down payment came from marital funds, neither party is entitled to an offset for the down payment, as the down payment was made with joint funds. If the down payment came from one spouse, and is a significant amount of money, that spouse may claim it as separate property and request a credit for that amount. However, the longer you and your spouse have been married and owned your home, the less likely any offsets would be granted by the court for a down payment made exclusively by your spouse.

WHAT IF I PAID DOWN THE BALANCE ON THE MORTGAGE OR PAID FOR IMPROVEMENTS TO THE MARITAL HOME WITH INHERITED FUNDS?

If you paid down the balance of the mortgage or paid for improvements to the home with inherited funds, one argument is that you “gifted” that money to the marriage. If this contribution was large, and close to the time of filing of the divorce, it may be possible to convince a judge that you should be awarded an offset for the contribution amount. However, the more common rule is that once inherited funds are co-mingled into marital funds, they become marital funds that are not divisible in a divorce action.

WHAT HAPPENS IF I PUT A DOWN PAYMENT ON THE MARITAL HOME FROM PROCEEDS FROM SALE OF A HOME OWNED PRIOR TO MARRIAGE?

Once again, the answer to this question is largely dependent on the length of the marriage. If it is a short-term marriage, you would have a separate property argument. If it is a long-term marriage, it is less likely that any offset would be given.

ARE YOU CONCERNED THAT YOU WILL BE LEFT OUT IN THE COLD?

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

Do you have questions about your marital assets? Determining what is marital and non-marital can be one of the most complex issues in your divorce. You have the right to expect a fair and equitable property division in your divorce. Schmitt Law, PLLC has the knowledge and skill to resolve financial matters using mediation and the collaborative approach, saving you time, money, and stress. To discuss your circumstances and legal options, contact Schmitt Law, PLLC online or call (616) 608-4634 to schedule a consultation.

Note, the contents provided above are for general information purposes only, and should not be construed as legal advice on any specific facts or circumstances. As family law is complex, answers to your specific and unique situation may vary greatly from the general answers provided in this blog.

What Is A “NO FAULT” Divorce In Michigan?

September 14, 2022 By Laurie Schmitt

Michigan is a no-fault state, which means that you do not need to provide a reason for seeking a divorce. You will not be required to show any wrongdoing on your spouse’s part to have a divorce granted.

In order to obtain a divorce in Michigan, you must declare in your complaint for divorce and testify at your final hearing that you had been a resident of the State of Michigan for 180 days before filing, that you had been a resident of the county in which you filed for 10 days before filing, and that there are “irreconcilable differences”. Irreconcilable differences means that there has been a breakdown of the marriage relationship so that the objects of matrimony have been destroyed and there is no likelihood the marriage can be preserved. This must be true at the time of filing and at the time of the final hearing.

To conclude, the only statutory requirement in the State of Michigan to be granted a divorce is that there has been a breakdown in your marriage, and you do not believe your marriage can be preserved. The judge will not ask you details as to what the actual breakdown was. You will just need to state that a breakdown in the marriage exists, and they will grant your request for a divorce.

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

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.

Hidden Assets In A Divorce

September 8, 2022 By Laurie Schmitt

Before you settle, obtain knowledge about your marital assets!

It’s not uncommon for spouses to lack all of the financial information in a marriage. But, it’s critical that, through the divorce process, you obtain all of the financial information such as bank accounts, retirement accounts, pensions, stocks, and business information in order to negotiate the terms of your divorce effectively and fairly. Diverse and high value assets can make this process complicated, and some spouses may try and take advantage of that by hiding some of their assets or the value of those assets.

IS IT LEGAL TO HIDE ASSETS IN A MICHIGAN DIVORCE?

Hiding assets in a Michigan divorce is illegal, and can result in an inequitable division of property. Why, because each party has a right to have marital assets divided equitably in the divorce action. And how can a judge divide the marital assets equitably if one spouse has more financial resources than is legally disclosed to the court? To ensure equity and fairness in the divorce process, both parties are legally obligated to disclose all marital assets to the other party in the discovery process and to the court.

WHAT HAPPENS IF I HIDE ASSETS IN MY MICHIGAN DIVORCE CASE?

If you attempt to defraud the court, the court will not take lightly that you attempted to hide assets during your divorce, and you can be found in contempt of court. Depending on the severity of the deception, you may face criminal charges. Alternatively, the family court judge may award your spouse a higher percentage of the marital assets, to include awarding your spouse the entirety of the hidden assets.

WHAT IF I DO NOT KNOW WHAT OUR MARITAL ASSETS ARE?

If you have not been active with your marital finances, or suspect your spouse has assets/accounts you may not know about, it is important that they be discovered. You and your spouse will be required to complete a Financial Affidavit disclosing necessary financial information. After the Financial Affidavits have been exchanged, your attorney can determine what other financial information they require, and request the necessary financial information from your spouse or their attorney.

HOW CAN I PROTECT MYSELF?

With specific language properly placed in your Judgment of Divorce, you can protect yourself. The language states that if your spouse fails to disclose assets during the divorce, these hidden assets discovered post-divorce will awarded to you. And, you should include language in your Judgment of Divorce that if you are required post-divorce to go before the court on a hidden asset issue, the offending party will be responsible for your attorney’s fees and court costs.

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

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 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 division in your divorce.

Payment of Household Bills During The Divorce

September 6, 2022 By Laurie Schmitt

It’s hard enough to make the life changing decision to end your marriage. And its daunting to think about the tough decisions ahead. But right now, all you can think about is how are the bills going to be paid while we are going through our divorce.

Many couples continue living together after one spouse has filed for divorce. Often, parties are unable to make future housing decisions until a final agreement has been reached determining the division of assets and debts. Therefore, couples must decide how to handle the payment of household expenses while the divorce is pending. If parties can resolve this issue outside of court, it can alleviate some of the stress for parties who already are in a tense situation.

If the parties cannot resolve the issue of payment of household expenses between themselves, either party may file a motion with the court to determine division and payment of the household expenses. If the judge is required to make a decision, in most cases judges expect parties maintain status quo of the household expenses. This means whatever the normal practice was during the divorce, is what it should be through the pendency of the divorce. The parties need to continue to contribute to the household expenses the same proportion as they did before the filing of the divorce.

If the parties separate after the filing of the divorce, the goal is to prevent foreclosure of homes, utilities being turned off, repossession of vehicles, and failure to pay credit cards. If a party makes the decision to move out prior to completion of the divorce, it does not absolve them from their financial responsibility to contribute to the household expenses.

The goal while going through your divorce is to maintain status quo. Therefore, if you or your spouse have filed for divorce, know what your financial obligations will be before making the decision to move out of the marital home. Albeit living together after the filing of the divorce may be uncomfortable, it may be financially necessary to do so. Seek legal assistance before making this major decision.

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

Collaborative Divorce

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