Can I sell the marital property to pay for my attorney?  There are two possible methods to respond to the query. This applies both before and after the divorce case is resolved. Clients claim they are unable to afford legal representation but do have marital assets they can sell to cover costs. Before the case even begins, all of your marital assets are included.

Click here to watch the video on Can I Sell the Marital Property to Pay for My Attorney – Michigan Law

Both couples’ property is referred to as marital property. Your spouse will probably insist on receiving half of the asset’s value if you use or sell that marital asset. Your spouse might not be willing to deal with any of the assets to cover your legal expenses. The parties can do anything they wish with the assets they received once the divorce procedure is over and all assets have been distributed by a final decision.

What marital asset are we talking about?

We divide the assets of marriage in a divorce. Most of your possessions—or your spouse’s—were accumulated during your marriage. If there is a title or deed, it doesn’t matter whose name is on it. Unless it was a gift or unless it is an inheritance, that asset is going to be marital property. You both own everything; hence, it is marital property.

Marital home.

You spent your married life in a house. That house is known as your marital home. Consider who can afford to own the home. Can you keep the house? Can you afford its upkeep? Can you pay for the mortgage on the house? Between you and your spouse who has the financial capacity to keep it. Whoever owns the marital house pays for its expenses. You pay mortgage payments. You pay property taxes. And, you pay for maintenance too. It makes sense for the person who can afford to keep the home.  There are times neither party can afford the house on their own. The only choice is to sell the house and split the proceeds.

One of two things could occur if your case gets to trial and the judge chooses how to divide your property. The residence could be given to one of you or sold by the judge. If the judge permits a sale, the money shall be divided equally between you and your husband. If you owe more than the house is worth, the difference will be split between you.

Retirement/ Pensions Plans

A pension or retirement plan is part of the marital property. A non-employee spouse is entitled to part of the plan. Especially the part accruing during the marriage. The spouse will receive a part of the retirement plan in the event of a divorce. Parties may agree to maintain their individual pensions. They could opt to keep their retirement plans whole and not split them. A spouse who is not employed may get assets equal to half of the retirement benefit.

The court must know beforehand the value of the properties involved before property division. This is to properly distribute marital assets in a fair and equitable manner. You can do this easily with a bank account but not with assets like a business or real estate. You need to consult an expert such as a business or real estate appraiser.

An appraiser is a  specialist who determines an asset’s market value. This expertise is particularly helpful in the real estate sector. An appraiser is required to act independently in a transaction of buying and selling. They must make an unbiased conclusion about the true and fair worth of an assessed asset. They use observations and any pertinent data, facts, and other information. The appraiser’s conclusions may be expressed verbally or in writing.

Evaluating retirement accounts may be particularly challenging. This is especially challenging when they are divided before their pay-out period. You need to figure out the account’s current worth. This calls for an actuary’s help.

An actuary helps clients reduce risk. An actuary does this by estimating the financial impact of uncertainty. They use math and statistics. A certified actuary can assess and control the risks involved in financial investments. This also applies to insurance policies and other potentially risky activities.

The court has to go through all the processes above to arrive at the phase we call property division. It is not easy to proceed to property division until all the marital assets are identified. Their value is then determined before you can say how much value in dollars goes to one spouse and the other. Until a divorce judgment is final, you can’t determine the value of the asset you are entitled to.

Can I sell the marital property to pay for my attorney?

A status quo order can be in place once the divorce process starts. Usually, a status quo order involves money. The status quo order demands that both parties continue to make contributions to all debts. These debts include the mortgage, insurance, and grocery bills. Both parties can have the same access to cash and credit as they did before the divorce was filed.

The financial status quo ensures financial access and bills payment remain the same. This can be so at least in the short term. This is because the legal waiting period for a divorce without minor children is 60 days. For divorce with minor children is 180 days. It is inevitable that things change in every divorce.

Ex parte restraining orders frequently entail the transfer of property. The parties are prohibited under the order from taking any extraordinary financial decisions. Especially decisions without the other party’s permission. There is the option for the opposing party to protest the entry of the ex parte order. The orders, however, continue to be in full force and effect while there is a hearing.

You are thinking or deciding on divorce. You don’t know where to get the money for the attorney fees or the filing fees. Maybe you know but you’re not sure if you want your spouse to know your filing for divorce. You’re thinking, should you sell properties? You’re thinking, can I sell properties to pay for my attorney?

The “American Rule” is applied by litigants in American courts. Parties to a lawsuit are normally responsible for their own legal fees and costs. This is so unless a statute, court order, or other agreement orders otherwise. Meaning the court allows one party to be held responsible for the legal costs. 

This is contrary to the “English Rule.” This is used in other countries. It mandates that the losing party pay the victorious side’s legal fees and costs. In Michigan, participants in divorce procedures often pay for their own attorneys. The court has the authority to require one spouse to pay the legal fees. The court can charge the other spouse in some situations.

Your spouse may not agree to the divorce. That alone should give you a signal that selling property to pay for a divorce attorney is off the table. All assets at your disposal are most likely marital assets. You can’t sell any unless your spouse consents or the court allows you. We mentioned the status quo order and the restraining order. Those orders are keeping all finances in place the way they are. This prevents you from selling or negotiating any property considered a marital asset.

Find some other way to pay for your legal fees. Ask someone outside your immediate family to give you a loan or have your attorney retainer charge to their credit card. Talk to your attorney. Know the best way to deal with your money matters.  Be sure about your decision to divorce. Do that before talking to an attorney.

Can my spouse pay for my legal costs? My attorney fees?

You can be a dependent spouse. Ask the court for an award of legal fees. You can be eligible for alimony payments or other post-separation assistance. If you are granted attorney’s fees, your spouse will be held liable for your reasonable legal expenses. If one spouse acted in bad faith and prolonged the legal proceedings excessively, attorney’s fees may be awarded to you. You can also seek the court for an advance of your share of the property division from the divorce. This is if an attorney-fee award would not be applicable to you but you are still having trouble paying your legal bills.

A judge may also grant legal fees on the basis of blame rather than the party’s financial situation. A divorce case may occasionally be prolonged unduly by one party acting in bad faith. It unfairly increases the innocent spouse’s attorney bills. This can take the shape of defying a court order, hiding assets or refusing to give documents. Other times it might take the form of one spouse engaging in unnecessary litigation. Making untrue accusations against the other spouse or refusing to compromise. 

The Court may, at its discretion, order the at-fault party to cover some or all the other party’s legal expenses in such a situation.

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You get into a car accident. Your house has been damaged. You submit a claim for insurance. The insurance provider denies the claim. You may proceed with the claim. You carry it out under the insurance company’s policies and practices. It could drain your energy. What to do if the insurance company denies a valid claim?

Click here to watch the video on What to Do if an Insurance Company Denies Valid Claim – Michigan Law

You must consider the likely result. But you need to make a decision straight away about defending your rights. The insurance provider must be sued for violation of the contract. Compare the value of the insurance claim to the results of your case. Legal fees will be incurred. Comprehend the financial implications of the matter before filing a lawsuit. It’s possible you won’t get what you want or as much as you desire.

What is insurance?

People get insurance to cover risks. They get insurance for their life. They have insurance for their home or their car. What is insurance? How does insurance work?

Insurance is, in essence, a contract. A policy contains the terms of the contract. A policyholder receives protection from financial loss or recompense from an insurance company. The company pools the risks of its clients to more easily handle payments to the insured.

Insurance plans are designed to guard against potential financial losses. Losses can be large or small. Losses are brought on by harm to the insured. It can also be damage to property or liability for harm or injury given to a third party.

Insurance is a contract or an agreement. The terms and conditions are embodied in a document called a policy. An insurer protects another against losses caused by particular calamities or hazards. The most popular insurance policies are those for life, health, homes, and automobiles. There are core components that make up most insurance policies. The basic components of an insurance policy are:

[ a ]  Deductible

[ b ]  Policy limit

[ c ]  Premium.

Deductible.

The policyholder is required to pay a specified amount in cash before the insurance company would settle a claim. Deductibles serve as a deterrent for filing numerous minor, insignificant claims.

Policy limit.

An insurer will compensate for a covered loss under the terms of the policy but it sets a maximum limit. The policy limit is the maximum limit. The timeline may decide maximums. Depending on the loss or damage, it could happen annually or over the course of the insurance. Or, for the term of the insurance, also referred to as the lifetime maximum.

Premium.

The price of a policy often expressed as a monthly expense, is called the premium. The insurer calculates the premium using your personal or your company’s risk profile. This includes creditworthiness.

How is insurance in Michigan?

Health insurance affects how quickly and frequently people get medical services. Uninsured women have more difficulty. They can’t access prenatal, postpartum, and postpartum care like insured women do. Those without insurance may suffer from a lack of access. It is just as difficult for their unborn children. Some uninsured women now have access to critical medical treatment thanks to Medicaid and other government programs. Their children also receive medical attention.

Approximately 1 in 17 Michigan women of reproductive age did not have health insurance in 2021 (5.9%). In 2021, 3.1% of Michigan’s children under the age of 19 lacked health insurance. In Michigan, during 2018-2020 (average), Medicaid coverage percentages at the time of birth were highest for Black women (66.1%). 

Check the rest of the percentages: 

[ a ]  Hispanics (59.6%), 

[ b ]  American Indian/Alaska Natives (56.1%), 

[ c ]  Whites (32.1%), and 

[ d ]  Asian/Pacific Islanders (23.8%).

The Michigan Association for Justice (MAJ). MAJ is a non-profit membership organization. It was founded in 1945. MAJ is committed to furthering trial lawyers’ needs and interests. It is focused on the unwavering pursuit of a just and efficient judicial system.  MAJ has more than 1,300 members from all corners of the mitten in firms of every lawyer. They are all working to represent injured Michiganders. MAJ promotes public safety and protects your right to a trial by jury.

MAJ has this to say about the insurance industry in Michigan. 

One of the industries in Michigan with the least regulation is insurance. This is from the perspective of protecting families and consumers. Insurance is exempt from the anti-trust laws that forbid collaboration and price-gouging. Insurance companies are not covered by consumer protection legislation. Insurance companies play games with the lives of policyholders. They do these while their policyholders are experiencing loss and disaster. Players in this industry currently do not face any significant penalties.

Insurance companies are free to reject legitimate claims. They are aware that no real adverse consequence will result for them. 

It is a felony if a policyholder is charged with defrauding an insurance provider. The policyholder might go to jail. Or get a fine of $50,000. There are no serious repercussions for an insurance business defrauding customers. A business or its CEO cannot go to jail. If your insurance company cheats on you, they just keep the money. They do that rather than paying for your house or your vital medical care. They make money by investing your money. Off of the profits, they earn interest. All that while you battle crippling medical issues. You suffer homelessness, bankruptcy, the loss of your business, or other hardships. The worst that can happen to the insurance firm is that they may eventually need to pay you. Pay you the money you are owed with interest but not the money they gained in the bond market. In addition to the potential for a laughably light $500 fine. Even that fine is seldom if at all, imposed.

Insurance firms typically come out on top. They transgress the laws. They delay paying policyholders, they reject legitimate claims, and they never experience repercussions. They simply wait till you go away or drop dead to keep your money.

There are four states who do not permit you to sue your insurance company for deceiving you. Michigan included.

Insurance scammers claimed they operate in Michigan because of our favorable legal environment. A scammer operating a bogus insurance company was apprehended. A judge only warned him that he might be subject to a hefty $500 fine if he continued to sell subpar insurance products in Michigan. When it would cost many times as much to establish a real, licensed insurance firm, it is hardly a punishment.

In Michigan, desperate judges have admitted that the regulations in fact let and encourage insurance companies to defraud their own policyholders.

What do you do if your insurance company denies your legitimate claim?

You expect to get the settlement you deserve following an accident. You paid your insurance bills on time and in full. It does not happen that way. Not always. Insurance companies risk making an already difficult situation even worse. They reject a valid claim or behave in absolute bad faith.

An insurance dispute arises when an insurance company declines to accept a valid claim. Many times, insurance companies will reject claims for justifiable reasons. There are also many instances where the insurance declines to pay a claim. These are claims for fictitious or dishonest justifications. Policyholders may find themselves in a difficult financial situation when claims are declined. Particularly if their claim is legitimate. Why would insurance companies refuse to compensate a person with a valid claim?

Bad faith in Insurance.

Bad faith is a legal term referring to a formal complaint filed by an insured person against the insurer. This happens when an insurer handles a claim in an unethical manner. Bad faith is when one disregards the interests of the person to whom an obligation is owed. Doing it while being capricious, careless, indifferent, or intentionally doing so.

There are many types of bad-faith insurance strategies. Some are a lot clearer than others. We list many instances of typical bad-faith strategies below.

[ a ]  Failing to give a good basis for their decision to refuse coverage

[ b ]  Causing unjustified delays and failing to complete the claims process in a timely manner

[ c ]  Misrepresenting the advantages or limits of an insurance policy

[ d ]  Ignoring insurance claims or failing to react to them in a timely manner

[ e ]  Failure to properly process, investigate, and settle claims

Count on your insurance company to address any questions you have. Queries about filing a claim and its present state. You expect to receive a clear explanation for the denial of your claim if it happens. You might be able to show the insurance company behaved in bad faith. Insurance companies looked for reasons to reject your claim. Bad-faith insurance would rather do that than try to figure out how to pay you what you are entitled to.

Filing a complaint in DIFS.

An insurance dispute is usually handled by the DIFS. Michigan Department of Insurance and Financial Services. The mission of the DIFS is to promote economic development and sustainability. It focuses on the insurance and financial services sectors. DIFS ensures Michigan residents have access to safe and secure insurance and financial services. The Department offers residents of Michigan resources for financial education. DIFS has outreach and advocates consumer protection. DIFS regulates banks, credit unions, and insurance firms. It also governs brokers, agencies, mortgage licensees, and businesses involved in consumer finance.

DIFS provides a form for filing an insurance dispute. Do this first. Contact your agent or insurer. Do it in person if possible.

[ 1 ]  Try to find a solution. Speak with a corporate representative or agent.

[ 2 ]  Explain the issue in a collected, polite manner.

[ 3 ]  Provide dates, sums, and as many pertinent details as you can.

Request a written response from the insurer or agent if you still do not agree with them. Request a list of the precise provisions. Ask for the exact language in the policy that they can use to exclude or reject coverage. To back up their actions, ask for copies of the paperwork that you signed when you applied for insurance.

Still, dissatisfied after a talk with the insurer or the agent? Contact DIFS’ Office of Consumer Services. Ask questions or file a written complaint by completing a form.

The papers you provide form the basis of your complaint. Make sure to include all necessary details and supporting documents, such as:

[ a ]  Name of the litigant’s insurance company and/or agent.

[ b ]  Claim and policy numbers.

[ c ]  Information about any prior interactions you may have had with your agent or insurer.

[ d ]  Copies of any records that support your case or provide light on the issue. Do not send original versions of your policy documents or related documents.

Following the submission of your complaint, DIFS will take the following actions:

[ 1 ]  Getting a written response by getting in touch with the insurer, insurance company, and/or insurance agent.

[ 2 ]  Verifying that the licensees mentioned in your complaint are acting by your insurance policy and the law.

[ 3 ]  Assisting you in comprehending potential possibilities or options.

You will get a letter from DIFS describing their findings. and a copy of all the communication DIFS came across while looking into your complaint. Ask DIFS questions if you disagree with DIFS findings or if it wasn’t a part of your initial complaint. You can give DIFS more material for examination.

DIFS authority is limited to the companies and agents that DIFS licenses. DIFS cannot assist in settling conflicts with companies outside their authority or not licensed by them. The insurance industry in Michigan is governed by DIFS. It has jurisdiction over contracts for insurance made in Michigan. In the majority of circumstances, complaints involving out-of-state insurance plans ought to be brought up with the state insurance regulating body where the policy was issued or delivered.

Sue the insurance company.

Suing the insurance company will be your next move. It all depends on the outcome of the DIFS process. Claims against insurance companies have not been in favor of policyholders. You will go to court. Talk to your attorney about this.

A bad faith insurance claim is similar to any other business or contract lawsuit. The case’s central issue concerns the interpretation of the insurance agreement and how it relates to a filed claim.

A lawyer will draft a Complaint and file it in court, just like they would in other contract issues. The insurance provider will then be presented with a summons to appear in court. The litigation procedure has just started.

The judge will typically be asked to interpret the language of the policy and render a decision in favor of one of the parties. It can be up to the jury to decide who wins the lawsuit when the language is open to many interpretations.

Kewin v. Massachusetts Life Ins. Co. is the principal case in Michigan where damages were given for bad faith (1980). The Michigan Supreme Court established the legal standard in that case for the restrictions placed on the amount of damages that can be awarded to a plaintiff who is able to establish that an insurer acted in bad faith.

The losses incurred by the insured as a result of the insurance contract’s breach often constitute damages. Attorney costs, interest on judgments, and contract interest are additional examples of damages. In some heinous circumstances, there is a slim likelihood of obtaining exemplary or punitive damages.

Do a cost-benefit analysis if you should litigate. You are up against a business with a huge financial resource. Your attorney can help you in weighing in the pros and cons of litigating.

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A probate court handles wills, trusts, and estates of decedents. When there’s a will left after a person dies, it has to be verified. It can be verified through the probate court. The court authenticates the will. And then, proceeds to oversee the enforcement of the will or the distribution of the estate. How do you verify a will in a probate case?

Click here to watch the video on How to Verify a Will in a Probate Case – Michigan Law

There will be situations in which someone can challenge the authenticity of the will. Someone thinks the will is suspicious. The timing of the writing is too close to the decedent’s death. Or, someone believes there was a radical change to what the prior will stated. A recipient or anyone with an interest in the will can go to court and challenge the will. The process of a probate court allows all parties interested in the case to verify or contest the will.

The rules of Michigan’s intestacy govern how assets are distributed when a person passes away without leaving a will, or intestate. These laws specify the sequence, or succession, in which family members will receive assets from an intestate decedent. The laws of intestate succession will be used by the probate court overseeing the person’s estate to determine who is entitled to any asset.

What is a last will and testament?

The Last Will and Testament. Known as a “Will” in Michigan, is one of the most known estate planning legal documents. A will enables you to safeguard your family. It guarantees that your assets are transferred to your “devisees.” Devisees are the people you select in your will, as opposed to the ones the state selects.

Write your will so that you can:

[ a ]  State who should get your house, your belongings, or your assets after you die and in what proportion.

[ b ]  Give specific dates and conditions. It says when your devisees should receive their part.

[ c ]  Name a guardian for your minor children. Your child’s guardian will make legal decisions on their behalf. The guardian will also decide on their education, medical care, and other matters.

[ d ]  Administer any assets or property you leave to minor children. Choose a conservator.

[ e ]  Name a Personal Representative or PR. Your PR oversees the proper execution of your will’s directives.

A holographic or handwritten will is acceptable in Michigan. The testator must date and sign the document at the bottom. The testator’s handwriting must also be used for all substantive elements of the will. A codicil, which must be executed in the same manner as a will, allows a Michigan will be changed at any time.

Codicil refers to an addition or supplement to a last will and testament. It clarifies, modifies, or revokes a will or a part of one. To understand how a will may be modified or revoked, you must first understand what a codicil is.

Codicils are essential if you have any reason to amend all or part of your will. Reasons for such changes are significant life events. Examples of such are birth, death, marriage, divorce, or migration out of state. An existing agreement’s codicil will either explain, change, or repeal certain clauses.

You can revoke a will by drafting a new one or by destroying the original one with the intention of doing so. The provisions in the will that benefit your former spouse are repealed if you die. It happens when the testator divorces. It can also happen if the marriage is declared invalid after executing the will.

What is probate?

Probate is a judicial process. It is the court-mandated distribution of a decedent’s estate. The executor can divide the testator’s property under the terms of the will. It is done when the validity of the will has been established in probate court.

For small estates in Michigan, an affidavit or a streamlined probate process may be used. This streamlined probate process transfers the decedent’s property to the survivor.

The Probate Court has jurisdiction over trust-related issues. This also includes the administration of decedents’ estates. The Court also hears issues involving guardianship and conservatorship.  These are issues involving juveniles, people with developmental impairments, and disabled adults. The court also hears petitions for involuntary hospitalization. It also does the same to the treatment of people with mental illness. The court abides by two state statutes. The Estates and Protected Individuals Code (EPIC) went into effect on April 1, 2000. And the Michigan Mental Health Code. The Court also deals with unrelated matters. Unrelated matters like drain appeals, delayed registration of foreign births, and unpublicized marriages.

You die without a last will and testament. What then?

The state’s intestacy rules apply to your estate (money and property). You died without leaving a last will and testament. This implies that the court will make decisions on the distribution of your assets. The distribution will be based on Michigan Probate Laws rather than your intentions. It’s not going to be the best situation for your devisees.

As an illustration, the court can decide to give to an estranged relative. A distant relation you never intended to provide an inheritance to. That relative is now entitled to your estate. The decision leaves your loved ones without anything.

Name a person in your will as your Personal Representative or PR. Another way to refer to this person is the Executor. This person handles carrying out your instructions as intended. For instance, overseeing the transfer of your property. Your PR ensures that each of your devisees or beneficiaries receives their inheritance. Fighting objections from omitted heirs.

You should select a person you can rely on to carry out your instructions. Your PR carries out the tasks listed in your will. Many people pick a close acquaintance or relative. It’s a smart idea to pick a young person. Someone who is able to bear the responsibility. It should be someone who is skilled in handling money and business dealings. Most importantly, you should pick an honest person.

You might be asking. If I have a will, do I have to go through all the hoops in probate? In Michigan, a will is actually your pass to probate. Your PR submits your last will and testament to the Probate Court in the county where you live. Your PR should be submitting it in the county where you hold property after your death. This will start the Michigan Probate procedure. Your last will and testament serve as a letter to the Probate Court. It is stating to whom you want to inherit your assets. It specifies who should oversee their distribution upon your passing.

The probate process has many potential disadvantages. It is so for the loved ones you leave behind in Probate Court. The procedure is entirely avoidable with the right Estate Plan in place. Probate can be expensive, drawn-out, and public. Avoid the costly and drawn-out Probate Court procedure. You might want to think about using a living trust or one of the other available legal solutions.

How does one verify a will in a probate case?

This a common worry when a family considers probating the estate of a departed loved one. What would happen if they cannot find the original last will and testament? Whether a copy of the will can be probated is a frequently asked question.

Maybe, according to Michigan law. Then again, maybe not. Depending on the particular circumstances. Depending on underlying facts, you may be able to probate a copy of a will. The question must be answered through probate court proceedings. Go through evidence presented at a hearing, and a probate judge’s decision.

The court rules that a copy cannot be probated. The estate will be divided under Michigan’s intestate succession laws. This means that the distribution may not be by the decedent’s preferences as stated in the will.

Michigan Estates and Protected Individuals Code (EPIC). Several EPIC provisions take effect during probate. Especially if an original final will and testament is not available. The document is lost or destroyed. A petition for probate must specify the availability of the last will and testament. The executed original of the decedent’s will is enclosed or in the court’s custody. The law also authorizes filing a certified copy of a will that has been admitted to probate elsewhere.

Overcoming a presumption that results from a statutory clause is another obstacle. The testator’s destruction of an original will indicates the revocation of the will. A rebuttable presumption of the decedent destroying the original will to revoke it emerges. The decedent actually has possession of an original will that supposedly cannot be found. A petitioner for the probate asking for a copy of the will must show proof. They must prove that the deceased would not have destroyed the original will if the decedent intended to revoke it. It is possible to prove these facts using the deceased person’s own remarks.

A probate court granting a request to probate a copy of a will is solely based on the facts of the case. It is based on the arguments made in court, and the judge’s conclusions drawn from the evidence. The probate of a copy of the original will under these circumstances has been both permitted and disallowed by Michigan courts.

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In the course of the divorce, can my ex cancel my insurance? Yes, they can. Is that acceptable? It’s not allowed. There is such a thing as maintenance throughout the divorce. It implies that all responsibilities and customary payments must continue. That also includes insurance coverage. The court considers it bad faith to act in this manner.

Click here to watch the video Can My Ex Cancel My Health or Car Insurance – Michigan Law

Stopping insurance payments violates the maintenance order. The court will not be amused by such ill-intent as suspending insurance payments. Future proceedings will take this into account. A person who acts dishonestly may be held in contempt. Insurance reinstatement will be mandated by the court. The court may make you pay for your spouse’s legal fees. Paying legal fees could be used as punishment for violating a maintenance order.

Can an ex-spouse cancel your insurance coverage?

While the divorce is in progress, your spouse cannot cancel your insurance coverage. Your spouse cannot stop making insurance payments. The family court has something known as a Financial Status Quo Order. It lays out in detail who will pay the bills after a divorce. It lays out the steps for depositing money. It specifies which expenses are to be paid during the divorce process.

Your spouse may be the main source of income. Avoiding the filing of a Financial Status Quo Order is common. The major wage earner is not given any protections under the order. The major wage earner is not given the choice to pay or not to pay the bills.

You could be the partner who is financially dependent. Your lawyer should normally enter a Financial Status Quo Order. The decree offers financial security throughout the divorce to maintain the status quo. Ex Parte filings of Financial Status Quo Orders are the norm. It indicates that it was submitted without the usual court hearing. Along with the divorce complaint, it is filed with the court for signature.

The marital estate is safeguarded by an order. This order forbids the transfer of property. Parties are prohibited from acting outside of the normal course of business by the order. Couples must refrain from actions like taking, hiding and transferring property. They are forbidden from damaging, selling, or destroying property, among other things. One side would be prohibited from closing a bank account under the restraining order. Or shut down a retirement account without the consent of the other party.

One party cannot financially penalize another under the terms of the Financial Status Quo Order. The order expressly requires both parties to uphold the current financial condition. Maintain a spending plan. This plan should cover expenses such as the mortgage, taxes, and utilities. It should cover car payments and insurance. Other examples include charge accounts and similar items.

Most restraining orders are handed down ex parte without the presence of the parties. A divorcing party may request the establishment of a restraining order. Without one, they say, their property rights will be violated. Both parties must be restrained to prevent abuse. A judge will issue an order that applies to both the husband and wife.

It’s important to remember that a court expresses itself through its orders. As a result, the court may hold a party in contempt if they disobey a restraining order. In severe cases, might lead to a fine or possibly jail time.

What happens when you as a beneficiary become an ex-spouse?

What happens to your insurance coverage after divorce? The short answer is you’re no longer covered. Your ex-spouse’s health insurance is via your ex-spouse’s employer while you were married. Employer-sponsored health insurance policies cover only qualifying dependents. You don’t meet the requirements anymore after divorce. Your kids will still continue to be covered. Companies are required to cover health insurance for an employee’s ex-spouse. This coverage is effective up to 36 months after divorce. The Consolidated Omnibus Budget Reconciliation Act (COBRA) defines this coverage.

You’re filing for divorce. It may be to your best advantage to think about giving health support for a brief period after the divorce. COBRA can be applicable to your situation. The judge takes that into account when determining spousal support. 

You are a financially dependent spouse. You need to work with your attorney. COBRA can tide you over for at most 36 months. You’re going to need more. Remember, you’re a custodial parent. Nothing stops your ex-spouse from re-designating you beneficiary. Ask your attorney to negotiate on your behalf. Negotiate for insurance coverage. Cover alimony and child support in the event your ex-spouse die. Insert a clause to include insurance in the final divorce judgment. Be the beneficiary for the sake of your children.

What happens to the insurance payout after divorce?

Michigan law, MCL 552.101 is a “revocation upon divorce” statute. This statute defines the status of a spouse in a life insurance policy. It says the spouse’s designation as the beneficiary is immediately revoked upon divorce. It is based upon the legislative assumption built into the legislation. A spouse stops identifying the ex-spouse as a beneficiary on any life insurance arrangements.

The Michigan courts have maintained the “revocation upon divorce” clause. It is illegal for an ex-spouse to collect the payoff from a life insurance policy. It is so even if the spouse is still designated as the beneficiary.

The ex-spouse is still eligible to receive benefits during the divorce process. This beneficiary designation needs to be formally reaffirmed following the divorce.

The payout is also protected under MCL 700.2807. This law nullifies not just you, the ex-spouse as a beneficiary. It also nullifies any of your family members. Those listed as beneficiaries on the policy. The Michigan Legislature apparently took the appropriate steps to take care of itself. It was happening frequently after divorce.

This law does not apply to those funds in financial accounts. These are financial accounts where you are named as a beneficiary.

The court requires the life insurance policyholder to keep the spouse as a beneficiary during the divorce. This is to maintain support payments. The divorce decree specifies a beneficiary in the life insurance policy. You will not be the beneficiary after the divorce. Your name will not be on the life insurance. You will not be entered in the divorce decree as a beneficiary.

You can still receive the proceeds of your ex-spouse’s life insurance after divorce. Your ex-spouse can then remarry and live a happy 50 years together with the new spouse. You’re still going to get the insurance proceeds although you’re not supposed to.  You are still the beneficiary. Your ex-spouse needs to change the beneficiary in the policy right after the divorce. Some ex-spouses want to keep their ex-spouses on as beneficiaries. It ensures support for their children. Your ex-spouse can create a trust to hold the money and appoint you as the executor.

You can still be a beneficiary after the divorce. Your ex-spouse can decide to keep you on the insurance policy. Your ex-spouse needs to re-designate you as the beneficiary once your divorce is final.

Use the proceeds to pay child support or alimony. This can happen after your divorce is finalized. Your ex-spouse’s attorney can put a very specific clause in the final divorce order.

What effect will the insurance policy have on the next marriage?

Insurance protects those you leave behind by providing the financial support to move on. Your ex-spouse doesn’t die. Your ex-spouse got married instead. Think about the effect of the insurance on the new family.

People typically name their spouses as beneficiaries of 401(k), 403(b), IRA, and bank accounts. People do that when they get married and start working. They name them as well in their life insurance provided by their companies.

It’s possible that after a while they get divorced. They neglect to remove their ex-spouse as a beneficiary on these financial instruments. This can be terrible for any potential new partners or their children.

What should your ex-spouse’s new spouse do if you call? You are asking to be the beneficiary of your ex-spouse’s life insurance. Or, the 401(k), IRA, or bank account after your ex-spouse dies away?

Your Judgment of Divorce should contain a clause on this. It should immediately revoke you as a beneficiary. Your ex-spouse’s new spouse needs to refer to the Judgment of Divorce to remedy the situation. The new spouse should do this right away. Prevent any funds from being disbursed to you.

The process of getting a divorce involves important life insurance considerations. This is especially true for divorcing couples who have children. Protect the financial interests of both parties and your dependent children. Keep adequate life insurance,

Keeping adequate insurance also includes changing the beneficiaries as appropriate. Account for the cash value of whole or universal life insurance policies. Protect alimony and child support income. The most important thing is ensuring children are always financially protected.

Other things to keep in mind about divorce and life insurance

[ a ]  Beneficiaries and insurance owners. Modifications must reflect the change in marital status and its consequences.

[ b ]  Term life insurance is typically viewed as a separate asset. The cash value of a permanent policy may be considered a marital asset.

[ c ]  Find out the policy’s cash value, if any, and, if necessary, how to divide it.

[ d ]  If you have primary custody of your children. Keep a policy on your ex-spouse. Keep the benefit amount high enough to replace child support or alimony. Calculate it to last at least until the last child reaches maturity.

[ e ]  In the event that you become a single parent, it is a smart idea to buy life insurance for yourself.

If you’re leaning towards COBRA for insurance coverage, expect costly payments for insurance after divorce. The average cost of COBRA insurance extensions is said to be very high. It’s around 84% of the typical monthly unemployment benefit. It is not a worthwhile option. Don’t get the insurance via your ex-spouse’s employer under COBRA after a divorce. Talk to your attorney about negotiating your insurance coverage.

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The mother and father start dating. Mother conceives a child. The father and mother split up a few months during the pregnancy. They don’t tie the knot. They have children. Father wasn’t present when the baby was born. On the birth certificate, he is not included. What are the rights of a father who isn’t on the birth certificate? 

Click here to watch the video What Are the Rights of a Father Who Isn’t on Birth Certificate – Michigan Law

The father is conscious of his paternity. He is no longer allowed to be involved in the child’s life. Legally speaking, the father isn’t even the child’s father yet. He has to prove paternity. Once paternity has been proven, the court may now issue a decision. Now that paternity has been established, the associated rights and duties can be established. Parenting time, custody, and child support are now included in these rights and duties.

You must know the legal context you pursue your rights as a father. Knowing Michigan’s regulations is essential. Laws or regulations differ from state to state when it comes to paternity and children. This is an overview of your rights as a father in Michigan. It addresses some of the most critical things fathers should know.

What is parental right?

Parental right. The ability of a parent to act on behalf of their child or children. It is the ability to make significant choices in the framework of family law. Parents of biological children are automatically granted these rights. These privileges also cover:

[ a ]  Adoptive parents; 

[ b ]  Foster parents; and,

[ c ]  Legal guardians (in certain circumstances).

Parental legal rights typically include:

[ 1 ]  Assuming custody of their child or children on a legal and physical basis;

[ 2 ]  Having specific visiting and contact rights with their child or children;

[ 3 ]  Making decisions about their child’s or children’s basic needs, such as school, religion, and medical care;

[ 4 ]  Leaving possessions to their child or children as an inheritance; 

[ 5 ]  Entering into a contract on their minor child’s or children’s behalf.

The parental rights mentioned are those that come with being the biological parent. A person can acquire parental rights in a number of different ways. One means of achieving this is through adoption. Adoption requires court approval. An adult can legally adopt a child who is not their biological child.

Each parent may be granted a separate set of parental rights. Rights that usually follow a formal separation or divorce. The child gets older and everyone’s requirements change. A parent can petition the court to modify these rights.

In these situations, parental rights are frequently referred to as custody rights. Physical custody and legal custody are the two primary categories of custody.

The parent who has physical custody is entitled to keep their child in their care. A court may grant shared physical custody. An arrangement where the parents live close to one another. These arrangements allow a child to spend roughly equal amounts of time with each parent.

The right to make decisions for the child’s upbringing, including educational and medical choices, is known as legal custody. A court will frequently grant both parents shared legal custody so that they can participate in making decisions.

Just like any parent, a father has rights. He has rights as outlined in the definition of parental rights above. What if you are a father but your name is not on the child’s birth certificate? What then?

How can a biological father establish paternity?

Regarding children born out of wedlock, Michigan law says this. A father of an unmarried child has two options for submitting paperwork. His fatherly paternal rights are protected by this document. If he and the mother of the child are unable to agree on parentage, this is the legal option. A father can start off with a “Notice of Intent to Claim Paternity,” to kick off the proceedings.

You as the father can be worried about the child being given up for adoption. It could be particularly important to submit this before the baby is born. Another choice for a father is to postpone bringing a paternity case to the Circuit Court. The father can wait until after the baby is delivered. If a DNA test is necessary, a court order can be obtained. It can be done following the filing of the paternity action. The court orders the minor child’s mother, father, and test subjects to appear for testing.

In general, Michigan has two ways of establishing paternity either “voluntarily” or “involuntarily.”

You can establish paternity voluntarily. The mother and father just have to agree that the father is the biological father. 

The “Affidavit of Parentage,” is required to freely prove paternity. It must be signed by the mother and father in front of a notary. The Affidavit of Parentage can be signed for free in the hospital. This is when the child is born and executed by both parents. The Affidavit of Parentage may also be completed at a later time. There is a fee for doing so because the father’s name must be changed or added to the birth record. The document must be signed and sent to the Division for Vital Records and Health Statistics. It is under the Department of Community Health’s Central Paternity Registry, 

Even though the father is married to another person, he can still sign an Affidavit of Parentage. The father is the “legal” father once the Affidavit of Parentage is completed and submitted.

An “order of filiation,” is another legal term for paternity. It is issued by the court in a legal action for the involuntary establishment of paternity. This process is referred to as “involuntary” since there is a paternity dispute, leading to a legal issue. Either the mother or father may bring a judicial action to establish paternity. The child might be receiving public assistance. In this case, the Michigan Department of Human Services may also bring a paternity action. This is done on behalf of the public.

The “petitioner” is the party seeking to establish paternity. To start the legal process for establishing paternity, the petitioner must submit a “complaint. This complaint will seek to establish paternity” in the circuit court. The paternity complaint should be filed in the county where the mother or child resides. If the supposed father questions or disputes that the child is his, genetic or DNA testing may be necessary. If it is determined that he is the father, the court would typically require him to cover the test costs. If the father is the biological father, the court issues a paternity order designating him as the child’s “legal” father.

What benefits can you get from establishing paternity?

Raised your child the way you see fit. Have a say in their lives. Play a proactive role in your children’s life from an early age.

A child must get to know their father. Establish a connection, a bond. The child can have relationships with both sides of the family. There are inherent advantages. This is on top of the emotional and psychological ones. Some of these advantages include:

For the dad:

[ a ]  Having legal custody over the child.

[ b ]  Enabling the father to add his name to the birth record of the child.

[ c ]  Enabling the father to have visiting privileges.

For the child:

[ a ]  Being qualified for parental benefits like health insurance and social security. 

[ b ]  Being entitled to earnings from life insurance policies, pensions, and inheritances.

[ c ]  Having access to both parents’ financial support.

[ d ]  Having access to both families’ medical histories to more accurately identify or avoid health problems.

[ e ]  Receiving the same privileges and entitlements as a child born to married parents.

For the mom:

[ a ]  Enabling the mother to ask the father for money so they can split the cost of parenting a child.

[ b ]  Giving the kid the chance to inherit from the daddy.

Fathers’ desire to make up for the lost time. It is reasonable. It’s important to keep in mind that children can adapt. Children may have had some adjustments. By this time, they have probably established a new routine.

Don’t focus on spending a lot of time. Focus on quality time. This entails maximizing the time that is spent together and being in the present. Make an effort to consistently spend time with your children. Choose a particular day or hour each week for kid-focused activities.

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Retirement assets are assets with benefits you don’t intend to use now. Or an asset you intend to liquidate during its maturity where the value is highest. If you’re liquidating because of divorce, you may want to leave out retirement assets. Retirement assets may be worth less if liquidated before their maturity. You have to find smart ways to divide retirement assets during divorce.

Click here to watch the video on Smart Ways to Divide Retirement Assets During Divorce – Michigan Law

Liquidation of retirement assets or securities is a taxable event. You may get less than its maturity values. Taxes and early withdrawal penalties will eat up portions of its gross value. The best approach is to keep the retirement assets. Give another asset or lessen the debts of the other party.

Both in the short and long terms, divorce can be financially catastrophic. Instead of one household, two must be supported by the same amount of combined revenue. Divorce can alter your ability to pay income taxes and qualify for health insurance.

Most individuals tend to concentrate on finding ways to get by from one paycheck to the next. Protecting your retirement savings is just as important.

After retiring, many people continue to live for at least 15 or 20 years. It might not seem fair to have to give away half of your retirement savings upon divorce. You dutifully put money into your retirement account while your spouse frittered away that much of their income. Take that bitter pill because that account is marital property.

What are retirement assets?

Retirement assets or retirement accounts are a form of savings intended to serve an individual’s retirement. An individual retirement account or IRA is a type of pension. It is offered by numerous financial organizations to get tax advantages for retirement savings. IRA is a trust created to manage investment properties paid for by a taxpayer’s income. IRA was created for the taxpayer’s potential retirement benefit. IRS Publication 590, Individual Retirement Arrangements explains the IRA. IRA is an individual retirement account. It is a specific kind of individual retirement arrangement (IRA). It is an Individual retirement annuity. The taxpayer buys an annuity contract or an endowment contract from a life insurance firm. These are employer-established benefit trusts.  The most common and most popular is the 401(k).

Aside from 401(K) are some other pensions, employee stock ownership plans, and profit-sharing plans. Other examples of these are 403(b), 457, and 409A.

Are retirement assets part of marital property?

The law governing divorce property in Michigan is MCL 552.28 and MCL 552.501. These laws allow for the split of assets accumulated during the marriage. Retirement accounts are considered property. The marital share is divided up if the account’s value increased during the marriage.

Similar to your home and bank accounts, retirement funds may be considered marital property. They must be divided between spouses in the event of a divorce. The guidelines for separating retirement savings, however, can be complex. When spouses divorce, both state and federal tax regulations may have an impact on how and when assets are split.

Most retirement accounts are created with the intention of being hidden away. You tuck it away until you retire or reach a specific age. You will incur heavy fines from the financial institution if you take the money from the account before the deadline. As long as you wait to withdraw from these funds until after retirement, the government normally does not tax them. The interest in the account will be taxed if you do an early withdrawal. When combined, these fines and taxes can deplete a person’s retirement savings almost entirely.

The National Defense Authorization Act. For those in the military service, the act added a Federal provision. Congress passed the act in December 2017. The provision preempts all state laws on military divorce. It sets forth the requirements for managing military pensions. The pension must be distributed equally among spouses under the new rule. On the day of the court order, it is split as though the military officer had retired.

In the new provision, the benefits of the military spouse that accrued at the time of divorce are divided. The new provision does not classify the entire benefit earned upon retirement between the two spouses as a marital asset. Any pension that the military spouse accrues after the divorce is recognized as separate property.

How will these retirement assets be divided in a divorce?

In Michigan divorces, judges and parties have a number of alternatives when it comes to dividing retirement accounts. Several possibilities include:

[ a ]  Each spouse could maintain their 401(k) intact. They could leave the other spouse’s account alone. Both spouses should have 401(k) accounts and the value of those accounts is about equal.

[ b ]  When the value of the accounts differs, the party with the higher 401(k) balance may incur more debt. The other party with the lower balance may be awarded other marital assets in an amount equal to the difference.

[ c ]  The 401(k) account could be divided between the parties using a Qualified Domestic Relations Order (QDRO). This creates a second 401(k) account for the non-employee spouse.

[ d ]  The parties could liquidate the 401(k) account to settle any outstanding debts. Please be aware that choosing this option can result in fines and taxes. It can reduce the account’s balance.

All retirement savings are divided in a divorce, according to Michigan law. This includes 401(k), 403(b), IRA, and other comparable eligible retirement accounts. Regardless of who earned the money or assets before the marriage, they are all deemed to be marital property. They are all subject to equitable distribution in the event of a divorce. This indicates that the account will be shared equally following divorce. This is regardless of whether the retirement assets are titled in the names of both parties or just one.

This only applies to the retirement accounts’ joint portion. This means that the balance of the account as of the date of the marriage will not be divided. You are the account holder. You should provide documentation to verify the date of your marriage.

The USFSPA governs the division of retirement accounts among military service personnel.  The “10/10 rule” governs the funds received from the Department of Finance and Accounting (DFAS). A person receiving funds must adhere to the requirements of the USFSPA. This requirement states that the couple must have been together for at least 10 years. The military member must have served on active service for 10 of those years. Spouses are not entitled to payments from DFAS if couples are not married for ten years. Or, if the serving spouse has not served for ten years. 

A person may still be qualified to receive a portion of their spouse’s military retirement pay. It should be specified in the divorce agreement. Establishing the 10/10 rule, the USFSPA also gives each state the freedom to enact its own laws. It allows for the consideration of military retirement benefits when splitting property. A 50/50 split is not always guaranteed in Michigan. Courts work to divide marital property in an equitable manner. A person can receive a share of their ex-military spouse’s benefits as part of the divorce settlement. They can receive up to 50% of the overall retirement payout.

Is there a way to protect my retirement assets from the property division?

You may be able to keep a part of a retirement account for yourself if it qualifies as separate property. In divorce cases, courts usually do not distribute separate property. You can learn more about those circumstances from your attorney.

Retirement accounts and any profits or growth are separate property if you had a job before getting married. This is also true if you had an old retirement account. An account you did not contribute to after getting married or rollover into with your new employment. There will be no claim on the asset by your spouse.

The court will see monies in a 401(k) retirement account as marital property. Marital assets will always be partitioned in divorce. It will be unless a pre or post-nuptial agreement specifies otherwise. The other spouse should expect to receive half of the funds from the 401(k) if just one spouse has one. The court may simply permit each party to maintain their account. This can happen if both spouses have their own 401(k) accounts and the balances are about equal.

Spouses can use collaborative law or mediation to develop their own plans for dividing 401(k) assets. They should submit the arrangement to the court. In cases when one spouse has a 401(k) and the other does not, couples can also construct agreements.  The non-account holder can get another asset. The asset or assets should be in an amount equal to the other spouse’s 401(k) balance. Use a Qualified Domestic Relations Order or QDRO in this situation with your 401(k). The use of QDRO after a divorce is one of the rare situations when 401(k) account holders can withdraw money from their accounts. They can do it without incurring penalties.

Create your own IRA. Get it before the divorce is finalized. Deposit retirement assets you get from your spouse into tax-deferred retirement accounts. This will help you to avoid penalties. Cashing out could provide you with money in the short term. Invest it in a tax-deferred retirement plan. It will increase your financial stability in the long run considerably more.

When talking about the division of retirement assets in a divorce remember this:

[ a ]  Retirement account contributions made throughout the marriage, along with an increase in those contributions, are regarded as marital assets.

[ b ]  An individual retirement account (IRA) distribution may be stipulated in a divorce judgment or a court-approved property settlement agreement.

[ c ]  A “qualified domestic relations order” (QDRO) is necessary to divide qualified plans like 401(k)s.

[ d ]  State law can be overridden by a legitimate prenuptial or premarital agreement, but a spouse may contest the arrangement and can have it declared invalid.

Going through a divorce is stressful. You’re ending an important relationship. The court is about to divide your assets and properties. You worry about your financial well-being after the divorce. You may even be justified in feeling resentful. Imagine having to “share” your retirement savings. Sharing it with someone you may not think deserves it. Get a better perspective by talking to an attorney about your retirement accounts. Your attorney may just have a way around your apprehensions.

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