Tips For Getting Your Finances In Order

At Boroja, Bernier & Associates, we know how overwhelming it can feel when you’re preparing for a divorce. Emotions run high, and the decisions you make early in the process can affect your financial future for years to come. We help clients throughout Troy, Shelby Township, Oakland County, and Macomb County take the right steps to protect what matters most. 

One of the most important things you can do at the start of a divorce is to get your financial house in order. Understanding your income, expenses, debts, and assets puts you in a stronger position when it’s time to negotiate a fair settlement. Michigan law allows for an equitable division of property, not necessarily equal, but fair based on a number of factors under MCL 552.19 and related statutes. The more organized you are, the more control you’ll have.

Start By Gathering Key Financial Records

To prepare for divorce, we always advise gathering your financial documents early. This includes recent tax returns, W-2s, pay stubs, bank statements, credit card statements, mortgage and loan documents, retirement account balances, and insurance policies. If you own a business or have self-employment income, collect profit and loss statements, invoices, and expense reports. These records provide a snapshot of your financial picture and will be necessary when the court evaluates property division, child support, or spousal support.

If you’re concerned about your spouse hiding assets or debts, this step is even more important. Michigan courts can issue discovery orders to compel disclosure, but being proactive can prevent disputes and delays. Keeping digital and printed copies of everything helps us assist you more efficiently.

Understand How Michigan Handles Property Division

Michigan is an equitable distribution state, meaning the court divides marital property fairly based on several factors. Under MCL 552.19 and MCL 552.401, marital property includes most assets and debts acquired during the marriage, regardless of who earned or spent the money. Separate property—such as inheritances, gifts, or assets owned before marriage—may be excluded unless they were commingled with marital funds.

We work closely with our clients to classify and value property correctly. This often includes homes, vehicles, retirement accounts, pensions, investments, and businesses. Understanding the difference between marital and separate property is critical, especially if you’re worried about losing assets that should remain yours.

Budget For Life After Divorce

Many people underestimate the cost of living post-divorce. Whether you’ll be receiving or paying support or covering more household expenses on your own, creating a realistic budget now can help reduce stress later. We help our clients plan ahead by reviewing current income and expenses and projecting what their financial situation may look like once the divorce is finalized.

This process also helps the court determine appropriate levels of child support and spousal support. Under MCL 552.23, spousal support is awarded based on factors such as length of the marriage, each party’s income and ability to earn, health, age, and standard of living during the marriage. The court’s goal is to avoid unfair financial hardship on either party.

Check And Monitor Your Credit

Divorce can have a surprising impact on your credit. Joint debts, missed payments, or disputes over financial responsibility can affect your score. Before the divorce is finalized, we suggest checking your credit report from all three major bureaus. Make sure all debts are reported accurately, and flag any unfamiliar accounts.

It’s also wise to freeze joint credit lines where possible and avoid taking on new shared debt. If you suspect your spouse might take financial actions that could harm your credit, we can help you file motions with the court to protect your interests.

Think Strategically About Support And Custody

If children are involved, your financial planning should include the realities of co-parenting and support obligations. Michigan courts calculate child support using the Michigan Child Support Formula Manual. The formula considers both parents’ incomes, the number of children, overnights spent with each parent, and other expenses like childcare or health insurance.

We prepare our clients thoroughly for these discussions by ensuring all financial data is clear, complete, and well-supported. Whether you expect to pay or receive support, being transparent and realistic will benefit both you and your children.

Frequently Asked Questions About Preparing Financially For Divorce In Michigan

What Is Considered Marital Property In Michigan? 

Marital property includes most income, real estate, retirement accounts, and debts acquired during the marriage. It does not matter whose name is on the title or account. Property that was acquired before marriage or through inheritance or gift is generally separate unless it was mixed with marital property.

How Do I Keep Separate Property From Being Divided In Divorce? 

To keep separate property protected, you must show clear evidence that it was never commingled with marital assets. For example, if you inherit money and deposit it into a joint bank account, it may lose its separate status. Keeping separate accounts and records is key.

Can I Open My Own Bank Account During Divorce? 

Yes, opening an individual account can help you manage your personal finances during the divorce. Just be mindful of any court orders regarding spending or asset transfers. We often recommend setting up an account for your income and tracking your expenses carefully.

How Does The Court Decide Spousal Support In Michigan? 

The court looks at many factors, including the length of the marriage, the needs and abilities of both parties, age, health, income, and prior standard of living. Spousal support is not automatic and is evaluated on a case-by-case basis under MCL 552.23.

Will The Court Consider Debt When Dividing Property? 

Yes, the court considers both assets and debts when dividing property. This includes mortgages, car loans, student loans, and credit card balances. The court will divide debts in a way that is fair based on both spouses’ financial situations and contributions to the marriage.

Contact Boroja, Bernier & Associates To Discuss Your Divorce Planning 

At Boroja, Bernier & Associates, we understand how emotionally and financially difficult divorce can be. That’s why we work closely with you to protect your rights and secure your financial future. If you’re preparing for divorce in Michigan, our experienced team will guide you every step of the way.
We offer consultations from our offices in Troy and Shelby Township, and we serve clients throughout Oakland and Macomb Counties. Contact our Shelby Township divorce attorney by calling 586-991-7611 to schedule a consultation. Let’s take the next step forward—together.