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Financial pitfalls to watch out for in divorce

On Behalf of | Oct 12, 2016 | Divorce

There are a number of potential financial pitfalls that Minnesota couples who are getting a divorce should be aware of. It is important to understand the family financial situation, but people should avoid the temptation to move sums of money around or buy anything large since this can appear as though they are attempting to hide assets. Gathering and organizing financial information rather than having an attorney do it may save money. People may want to see a therapist and hire other professionals to assist with various aspects of the divorce.

People who are unemployed should not wait to prepare to enter the workforce. This is the time to start thinking about a career or starting a business.

People who are divorcing should avoid the temptation to move out of the house too soon because it could be legally construed as abandoning the family. However, they should also not get too attached to the home when selling it is usually the best option. There may be legal and tax hurdles in splitting some assets. Retirement plan administrators must approve splitting a pension, and cashing out on the retirement account might be accompanied by hefty tax penalties.

Divorce is an emotionally painful time that requires people to make important decisions about their future. An attorney might be able to assist in focusing on building a solid financial future rather than feeling guilty or vindictive about the divorce. People should keep in mind that if they are able to negotiate property division with their spouse through their attorney, they may have more input into these decisions than if talks break down and they must go before a judge.

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