The College Board reports that college costs have been rising at least 3 percent each year, but many families in Minnesota may still lack a financial plan in case of divorce or the death of one spouse. Divorce can make paying for college even harder, but there are steps parents can take to protect their children's education.
The end of a marriage can be a challenge for Minnesota couples with children during any time of the year. The stress that sometimes goes along with post-divorce co-parenting can be even greater during the holiday season, especially with the increased shuffling of kids back and forth between homes. This increased contact also boosts the odds for unexpected dilemmas and conflicts. Having a clear playbook for dealing with divorce during the holidays when children are involved may make things easier for everyone.
Temporary custody may be granted in cases in Minnesota when parents are going through a divorce. However, the orders that are initially put in place as temporary custody orders may become permanent once the divorce is final. A court attempts to make a decision regarding custody based on the best interests of the child.
For some Minnesota couples who are ending their marriages, changes mandated by the Tax Cuts and Jobs Act, which passed in late 2017, will mean less money for them after the divorce. The TCJA changed how parents can take exemptions for children on their taxes and how alimony is affected by the new law.
"Gray divorce" is a term often used for marriage separations among the 50-and-older age group. According to national statistics, more and more Minnesotans are going through gray divorces. It's important to note that many older ex-spouses face added challenges such as health issues, social isolation and financial problems.
The start of the school year in Minnesota brings new schedules and extra expenses. Divorced parents will benefit from tackling these demands head on. Planning during the final days of summer vacation will go a long way toward preventing scheduling conflicts and making sure that fees for uniforms, extracurricular activities and supplies get paid.
When Minnesota women decide to divorce, the decision to end their marriage can come with unexpected financial changes. In one study of 1,785 adult women, including those planning for divorce, going through the process or with a finalized divorce, 46 percent said that they had encountered surprises during the process with an impact on their finances. Most of the women who participated in the study were already divorced, and over one-fifth were 55 or older.
When a marriage ends, all involved parties should revisit their financial plans. However, few exes have explicitly written plans in place for managing expenses such as college expenses for their children. Even if a divorce seems unlikely, all Minnesota couples should map out their plans in case of a separation.
If you’re planning to get divorced, there are probably a thousand issues running through your head. Who will get custody of your children? How much will you have to pay in alimony? How will you move past the pain and resentment you feel toward your ex? With all of these dramatic life changes on the line, your estate plan is probably not at the top of your priority list.