1. Home
  2.  » 
  3. Family Law
  4.  » What financial matters will your divorce likely affect?

What financial matters will your divorce likely affect?

On Behalf of | Jul 31, 2021 | Family Law

Many Minnesota residents considering divorce, you among them, may start by weighing the pros and cons. You may think about how it would be nice to argue less, have the ability to get back into some of your personal interests that have fallen to the wayside and generally not feel stuck in an unsatisfying marital relationship. Of course, you may also think about how much divorce will change your life and whether you could handle the financial changes that would result.

Certainly, the changes may be difficult to navigate at first, but if you prepare for the financial repercussions ahead of time, you may have a chance to limit the negative effects of divorce on your money matters.

Issues to keep in mind

One of the biggest ways you could help yourself address the financial aspects of divorce is to understand what areas will come into focus. Some of the more common topics you will likely need to consider include the following:

  • Property division: Minnesota is an equitable division state, which means that the court will divide your marital property as fairly as possible. However, you and your spouse could come to terms on your own.
  • Tax changes: You and your soon-to-be ex may need to decide who will claim any children you have as dependents on your taxes and determine how to address any support payments you receive or pay come tax time.
  • Retirement accounts: Though you and your spouse may have separate retirement accounts, the funds in those accounts could still face division under the state’s property division laws.
  • Debt division: In addition to dividing assets, you will also need to divide marital debts. Fortunately, you could have various options for negotiating the division of debt in a way that may suit your needs.

Depending on your exact circumstances, you might have more areas to consider that could affect your financial affairs in relation to your divorce.

Gaining information

Because each case is different, the exact outcomes of your case are somewhat unpredictable. However, you could put your best foot forward by gaining reliable information about your legal rights and options and how you could work toward compromise and fruitful negotiations with your soon-to-be ex. Though such a major life change can certainly seem scary, you may find yourself on your way to a happier future afterward.