Minnesota residents facing divorce might think to themselves that it makes financial sense to do a low-cost, do-it-yourself divorce. They may believe it's as easy as splitting any retirement accounts and pensions equally and walking away. What many don't realize is that dividing pension and retirement funds without having proper legal agreements could leave one or both parties looking at some expensive tax bills or hefty penalties.
When one spouse transfers or hides marital assets, this could be a sign that the spouse who is being secretive is considering filing for divorce. If this occurs, it may be a good idea for the other spouse to speak to an attorney and begin gathering financial records. Minnesota is not a community property state, which means that a judge will divide property in a divorce according to principles of fairness.
Minnesota couples who are ending their marriage should know what types of impact a divorce will have on their taxes. This knowledge can help them make necessary preparations.
Federal employees and retirees who initiate a divorce in Minnesota must give their Thrift Savings Plan retirement accounts special consideration during the property division process. No federal laws govern the division of the account balance during a marital split, but the legal documentation must meet certain criteria before a plan administrator disperses funds in a divorce settlement.
When a Minnesota couple is getting a divorce and one or both of them owns a business, that asset will usually be divided along with other shared marital property. The couple will need to decide whether to have a skilled valuation analyst do a calculation of value or a full valuation.
People in Minnesota who are considering a divorce might want to review their financial situation. They may find that other people are eager to offer advice, but it can be difficult to generalize based on experiences in other jurisdictions. Professionals such as attorneys and certified divorce financial analysts might be in a better position to answer questions.
When Minnesota couples start a business, they expect to be able to continue running it together without worrying about what could happen if their romance ends. While couples can potentially discuss a contingency plan, where one person agrees to exit the company, talking about splitting up the company when things appear to be going so well can be an uncomfortable discussion. However, the business could potentially become a problem if couples do not take steps to protect themselves.
Just like any other marital assets, business interests are often subject to division in a divorce. A Minnesota couple that overlooks this possibility could endanger the company that they own if they end their marriage. The business might not have enough cash on hand to buy out one of the parties, which could force its sale. Planning for this possibility could eliminate such pressures and ensure assets stay in family hands.
While many Minnesota viewers have watched Christina and Tarek El Moussa rebuild homes on their reality television show "Flip or Flop", the couple's marriage has fallen into disrepair. With divorce on the horizon, their assets that total approximately $4 million will need to be divided.
As many Minnesota estranged couples can attest, divorce has the potential to be rather expensive. Donald Trump's first wife received $25 million in cash plus a $14 million estate in a divorce settlement. His second wife received just over $2 million as per their prenuptial agreement. Celebrities such as Mel Gibson, Steven Spielberg and Michael Jordan have been involved in divorce settlements that totaled over $100 million.