Getting divorced is a frightening prospect financially, especially for older high-asset couples with large and complex estates to divide. Fortunately, with a little bit of effort and some straightforward pre-divorce planning it is possible to keep the costs of property division in check. Minnesota readers thinking about filing for divorce may find the following blog on divorce preparation and the divorce asset split informative.
Whenever someone is considering a divorce the first thing that they need to do is familiarize themselves with the family finances. It is not uncommon for just one spouse to take care of the family finances in a marriage, but in a divorce the other spouse needs to acquire the same level of knowledge. This means catching up on everything from each spouse's retirement savings plan and investment portfolio, to business assets and real property holdings.
Depending on the state of affairs between the couple, it may also be a good idea to start separating oneself financially from the other spouse as well. This means closing joint bank and credit accounts. A little independence here can go a long way. This is especially true when there is bad blood between the spouses.
Finally, consider meeting with an experienced family law attorney sooner rather than later. While an attorney is bound to enter the picture at some point, having one on hand early in the process can help you prioritize what needs to be done. And, while property division is a scary proposition, in a lot of divorce cases the biggest cost is prolonged litigation due to poorly prepared couples.
Source: ABC News, "How to Protect Your Finances in a Divorce," AJ Smith, March 31, 2014
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