Financial security throughout the divorce process

On Behalf of | Aug 12, 2019 | Divorce

Financial security may be a concern for anyone in Minnesota who is going through a divorce. For people who are nearing or past retirement age or who have been a stay-at-home parent, this can be particularly true.

While a catastrophic illness or accident can happen to anyone, older people may be at a higher risk. This was the case with one couple in which the husband was 82 and in ill health during their divorce. If he had property that he did not want his wife to inherit and he died before the divorce was final, she might inherit it anyway. Couples may want to consider how they will handle issues such as these. Even for younger couples, insurance policies may be important in case of death or disability if one person is paying support to the other.

Creating a budget is another step that can be particularly important for a spouse who has not participated much in the family finances. It may be necessary to purchase a new vehicle and find a new home. Some people may want to keep the family home, but it might need to be refinanced. There may also be other costs associated with it. This could be true for other assets as well. For example, some retirement accounts might be taxed on distribution.

People will need to consider these and other issues as they head into divorce negotiations for property division. It is not always possible for a couple to reach an agreement without going to court, but doing so can be less expensive and leave them in more control of the outcome. However, people should not let themselves be overwhelmed by emotions during these negotiations. It is important to keep the goal of protecting oneself financially in mind despite feeling sadness, guilt or anger over the divorce.