Oftentimes we do not realize how little we know until it is too late. As we observed in an article not long ago, this is a dilemma that some older Minnesota couples considering divorce may end up facing.
According to some financial planners, the possibility of divorce is something that all married individuals should keep in the back of their mind. In fact, some financial planners recommend, in light of this possibility, that spouses maintain their financial independence throughout the marriage.
We try to make it a point to not focus too much of our blog attention on the divorces of the rich and famous. They don't tend to reflect the kind of divorce situations that most Minnesota couples are facing. But there are times when aspects of high-profile divorces provide valuable insights into the issues that can arise.
There are very few things that are certain in this life. The joke goes that the only sure things are death and taxes. Laws have been around for millennia -- the idea being that they provide some sense of surety about life. That's the concept, at least. You go to court, get a decision and you know where you stand in the eyes of all.
Managing a business throughout a divorce can be a complex and emotionally trying experience. Divorce can leave family-owned businesses vulnerable to a number of serious consequences, including dissolution. While no one plans on divorce, it is usually reported that approximately 50 percent of marriages in the United States end in divorce. That is just one reason why it is so important for couples with family-owned business to plan for the possibility it may occur.
Divorce can be expensive, especially for high-asset couples with large financial holdings and extensive business assets. The cost of divorce, however, is about much more than lawyer's bills and court costs, it is often about income tax. While the following blog does not address many of the complex issues associated with tax and divorce, particularly the nuances of property division, Minnesota couples may find it as a nice primer on income tax and divorce.
Family-owned businesses are part of the American way of life, including here in Minnesota. Unfortunately, so is divorce. According to a professor of entrepreneurship at North Dakota State University, nearly 65 percent of all U.S. businesses are family-owned, with approximately 30 percent co-owned by spouses. With so many buisness owned by married couples it is essential that all couples have a plan for handling the business after a divorce.
Divorce is rarely quick and easy, especially for high asset couples. One example of this is the Demi Moore and Ashton Kutcher divorce. As many Minnesota residents may recall the high profile couple announced their split more than a year ago. So why is it taking so long?
A prenuptial agreement is important for those looking to protect property interests following marriage. In some cases, failing to draft a prenuptial agreement can result in painful losses. Think McCartney! The following is another example of bad planning by a high-profile couple with complex asset division issues, including a family-owned business, and the painful effect of not entering into a prenuptial agreement. Minnesota couples should consider this a warning.
Whether it is the result of a desire to make change or simply to postpone tax consequences, divorce is particularly popular in the month of January. Regardless of why a couple decides to end a marriage, the fact is that divorce can be a long process, especially for high-asset couples with complex asset division. The following is some advice for Minnesota couples considering filing for a divorce. If nothing else, it might help some couples begin to prepare.