Minnesota residents contemplating a divorce would do well to consider avoiding mistakes that could have a negative impact on their financial situation after the divorce. For example, an individual going through a divorce may feel tempted to share a lot of information about the divorce or about their soon to be ex on social media. Doing this can harm the divorce negotiations.
Even though the divorce rate in the United States is falling, divorce still occurs frequently. Couples in Minnesota who are considering getting a divorce may be interested to learn that some reasons for divorce are very common.
Minnesota students who get married might want to consider creating prenuptial agreements. This may be particularly true for students who are in law or medical school. Even if these students do not yet have assets, they might have significant debt. They may also have a strong likelihood of significant earnings in the future. Both of these things should be taken into consideration when creating a prenup.
For some Minnesota couples, marital arrangements include situations where one spouse is dependent on the other one for financial decisions. Should a marriage come to an end, a dependent former spouse may opt to continue to rely on the same set of professionals that advised their ex. The justification for doing so may be to ease the transition process. However, it can be difficult for newly-single adults to make a clean break while still working with a team they may not have selected or even dealt with personally.
Like in other parts of the country, marriage in Minnesota is meant to be a lasting and legal bond shared by two people in love. Unfortunately, love and marriage are seldom easy, and in many cases, unforeseen complications can arise that make divorce more likely. For example, Fatherly points out that research has been done into the subject of attractiveness and marriage success. This research suggests that marriages involving men marrying women who are significantly more attractive may result in divorce at a rate higher than the average.
For many people in Minnesota, news of the tax changes to come with the new year in 2019 led them to speed up their divorce agreements in order to finalize by the end of 2018. As part of the Tax Cuts and Jobs Act passed in late 2017, alimony tax rules that have been in place for decades will be dramatically altered as of Jan. 1, 2019. While the tax treatment of couples who are already divorced will remain the same, people who divorce moving forward will need to reach a settlement under the new tax laws.
When people in Minnesota get a divorce, they may be prone to making a number of financial mistakes. Some of those errors could happen because of a lack of familiarity with tax law. For example, they may try to liquidate some assets to pay debts, but there could be a significant tax attached to that liquidation.
Couples planning to walk down the aisle in Minnesota often have visions of spending a lifetime together. Unfortunately, this isn't always the reality with marriages today, which is why it can be a smart idea for two people planning to legally wed to consider a prenuptial agreement beforehand. Yet some couples avoid discussing a prenup because of lingering misconceptions, such as the belief that such a document is only necessary if one spouse has significant wealth they want to protect. In reality, a prenup can cover all types of marital assets, so disputes can be avoided later.
Most Minnesota couples enter into marriage with optimism about its long-term success but are likely mindful of the conventional wisdom that about one half of all unions ultimately fail. The desire to succeed may not in and of itself be a difference maker, but an awareness of specific personality traits, which may point to a greater probability of a split if left unchecked, could be useful in tilting the odds in favor of longevity.
It may seem counter-intuitive to suggest to a Minnesota couple to plan their divorce, yet like other significant financial events during one's life, understanding the realities and preparation make the split easier for all concerned. The economic burden of establishing two separate households cannot be ignored, and the Trump administration's Tax Cut and Jobs Act passed in 2017 has provisions affecting divorced couples beginning this year.