For Minnesota estranged couples, divorce may be an emotional time. It can also be a time in which many financial mistakes are made. An individual going through divorce may be best served by having both an attorney and a financial planner to help with financial decisions related to the end of a marriage. However, individuals can help themselves by learning as much about the financial implications of a divorce as possible.
For instance, understanding the costs of retaining the family home may make an individual less likely to want it in a divorce settlement. While retaining a home means not having to move, it may also mean paying maintenance and other costs that are not affordable on one income.
Keeping a home in exchange for giving up a claim to retirement accounts or other liquid assets may also be unwise. This is because those assets may grow in value over time. While the house may also appreciate in value, maintenance costs and other expenses may negate that growth. There may also be different tax consequences depending on what assets an individual takes in a divorce. For instance, getting cash from a joint checking account is generally preferable to getting cash inside of a 401(k) because there is no tax when withdrawing from a checking account.
The end of a marriage may be emotional for many individuals. By talking to an attorney, it may be possible for an individual to have an objective observer review the case and provide advice as to how to proceed. Legal counsel may be able to negotiate a divorce settlement that is best for the client based on the facts in the case.