The rate of marital dissolution has dropped from around 50% around 40 years ago to about 39% now. However, divorce in Minnesota can still easily happen today if two spouses have irreconcilable differences. Unfortunately, divorce can be devastating from not only an emotional standpoint but also a financial one. Here is a rundown on what individuals who are going through divorce can do protect themselves financially in the years ahead.
First, it may behoove those going through marital dissolutions to consult financial planners early on. These professionals can assist divorcing spouses in understanding how much they own versus how much they owe. This is especially the case for spouses who were not active in overseeing their family finances, including paying bills, managing budgets, and contributing to investment or retirement accounts.
An important part of understanding all of the assets owned and debts owed is to gather all personal financial information as soon as possible. Divorcing spouses can do this by compiling all of their savings and checking accounts, 401(k)s, HSAs, pensions and IRAs. They can also look for property deeds and examine pay stubs. Tax returns, bank statements and statements from credit card companies can also provide helpful information about assets and liabilities.
An attorney in Minnesota can then analyze divorcing parties’ financial information and guide them in pursuing their fair shares in their divorce settlements. For example, the attorney may advise a person who is getting divorced to keep financial assets in exchange for the marital home. The attorney’s goal is to make sure that the client’s best interests and rights are protected from start to finish.