Financial protection for the higher-earning spouse

On Behalf of | Jun 21, 2017 | Divorce

There may be a significant disparity in income among some Minnesota couples who are getting a divorce. While in the past it was almost always the husband who made more money, women’s incomes are beginning to catch up. Women in particular might want to be careful about protecting their money and maintaining financial independence by establishing credit and a bank account in their own name. However, whatever a person’s gender, there are certain steps that can be taken for financial protection in this situation.

People may want to consider a prenuptial agreement or, if they are already married, a postnuptial agreement. This specifies how their property will be divided in the event of a divorce and may specify certain assets as belonging to one person or the other. Creating these types of agreements requires a lot of communication about financial matters, but this should happen regardless.

A person who owns a business should take steps to protect it in the event of a divorce as well. Otherwise, the other spouse may have a claim on it even if the spouse has not worked in the business.

One of the first steps a person who is considering divorce might want to take is reviewing the financial situation. The person might gather as many relevant document as possible and consult an attorney. Depending on the circumstances, a person might even do this before discussing divorce with the spouse. This can help people begin to protect themselves and understand how property division might proceed. They can also make certain that they do not take any actions that will look unfavorable to a judge or that may be prohibited such as moving large amounts of money out of a joint account.