Minnesota Public Radio recently had finance expert Ruth Hayden on The Daily Circuit to discuss issues that matter to a lot of Minnesotans -- money and divorce. According to recent statistics, nearly one in 10 marriages end in divorce before the five-year mark and nearly one-quarter of marriages end in divorce before their tenth wedding anniversary. With such a high rate of divorce, couples with complex asset division, such as a family owned business, might benefit from some of Hayden's advice.
Probably the most important tip Hayden provided on divorce was to be prepared. It may seem counter intuitive to suggest being prepared for something like divorce, but it is a reality and not thinking about it until it happens can make matters worse. This does not mean that people should sit and mediate on leaving their spouses, but rather they should get knowledgeable about important financial issues that may very seriously affect their lives.
So what does that mean, get knowledgeable? Too often in society only one person in a household has any real idea about the household's finances. This can create a weird power dynamic. It can also make it difficult to know if people are getting everything they are entitled to in a divorce. That is why it is important for people to learn about their finances. To understand their finances it might be a good idea to sit down with a financial planner, but first find out what you have. These days a lot of research can be done online, which is a good place to start.
Learning a little bit more about your retirement accounts, investment plans, mortgage and other aspects of the household finances is key to empowerment. This knowledge can come in handy in variety of circumstances, not just divorce. But if divorce should strike, people will likely not regret the time they took to sit down and work through their finances.
Source: Minnesota Public Radio, "Ruth Hayden on money and divorce," Emily Kaiser, Oct. 12, 2012
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