When many Minnesota couples decide to end their marriage, the first thing on their minds may be to get it over with as quickly as possible. But in their haste, they may be missing out on a more secure financial future. It’s not fair for one spouse to walk out with most or all of the money and assets, while the other ends up poor and struggling financially, especially if there are children involved. Therefore, it’s important for both parties to be involved in household finances from the get-go and make sure each person gets what they deserve in a divorce.
In a divorce, marital property is split between the two parties. What many people don’t know, however, is that there is often room for negotiation, especially if a person is aware of all the assets on the table. Retirement accounts, collectibles, stocks and bonds are all subject to split, but if a person doesn’t know about them, then he or she loses out.
There will likely be many questions during the divorce and it can help to have a strong legal and financial team. This is especially true in high asset divorces where there is a lot at stake. When a person tries to save money by doing everything himself, he can end up making bad decisions that can affect him financially for the rest of his life. It’s important to make sure everything is in writing; if it’s not documented, there are chances it won’t be followed out.
Divorces are stressful and it’s not uncommon for emotions to cause a person to lose out. Divorce is something that can affect someone for decades. With financial knowledge and a strong legal team, a person can walk away from a marriage feeling more secure and able to move on with life.
Source: The Fiscal Times, “Divorce: 3 Mistakes That Will Crush Your Financial Future,”Kathryn Tuggle, May 28, 2015