Most divorced Minnesota spouses will likely agree that ending a marriage is both financially and emotionally draining. However, it is crucial to avoid having the emotions rule the financial decisions made at this challenging time. This often happens when one spouse insists on keeping the family home after the divorce. Without proper consideration of all the factors, that person might find that the maintenance, mortgage and other house-related expenses are unaffordable on a single income. Securing a new mortgage on only one spouse’s salary might be challenging.
For some people, retail therapy is the only medication for emotional trauma, but buying a new car, having plastic surgery or any other significant expenses can lead to an unmanageable debt load. Furthermore, it could adversely affect his or her credit score. Cashing in investments is another impulsive action that is best avoided because it might solve immediate problems but create future difficulties, and it might even ruin all goals and plans that person had for the future. It might be more beneficial to draft a financial plan.
The new tax implications of spousal support deserve careful consideration. Quitting a job or taking a voluntary pay-cut to avoid paying alimony will benefit neither party. Seeking legal counsel to assist with matters related to 401(k) distribution, tax implications, a qualified domestic relations order and more might be wise.
Having the support and guidance of an experienced Minnesota divorce attorney is a valuable asset. A lawyer can explain the various options along with their pros and cons. This will allow the client to make informed financial decisions about real estate and taxes and other matters that will impact post-divorce financial stability.
