It is all too easy for high-asset couples to make costly financial mistakes during the divorce process. Often times, these mistakes are the result of emotional exhaustion and the desire to move on to quickly. While this is certainly understandable, it is important that Minnesota couples going through a high-asset remember to prepare for the financial side of the divorce. The following is a few pieces of advice on property division for Minnesota couples currently considering a divorce.
Before the divorce process even begins couples should start to get their financial house in order. Doing so ahead of time will save both parties time and money. Some of the things that need to be done include gathering financial documentation on investments and assets, including the family home, vacation property and even liabilities. In addition to dividing the property, the court uses this information to determine child support payments and alimony.
In some cases an independent party may be necessary to ascertain the value of certain property. This is particularly true with assets like antiques or family heirlooms. In addition to providing a starting point for future negotiations, property valuation will provide both parties with a sense of fairness. Depending on the relationship some parties choose to pay for this together, other times couples choose to hire their own independent evaluators.
When dividing property it is also imperative that people understand the difference between such terms as community property, marital property and equitable property. These terms refer to state property laws that affect how a court considers property when a couple cannot agree on how the property should be divided.
Source: The Courier, "Financial concerns during a divorce," May 11, 2013
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