When preparing for a divorce in Minnesota, understanding your financial situation is among the first and most important steps you need to take. Having a comprehensive picture of your finances will help you make informed decisions and potentially lead to a fairer outcome in your divorce settlement.
This is particularly vital in Minnesota, where the law divides marital property fairly and not necessarily 50/50. The following checklist provides a comprehensive guide to help you navigate this significant life transition.
Identify your income and spending habits
Start by taking note of any regular income, including your salary, investments and other sources of revenue. After that, track your expenses for at least a month to get a better understanding of your finances. By pinpointing unnecessary expenses, you may find opportunities to free up money for savings or debt repayment.
Make a list of all your assets and debts
To prepare for asset division in a divorce, create a detailed inventory of all your assets and debts. This includes everything from bank accounts and investments to credit card debt and mortgages. Be sure to include any joint accounts and debts you share with your spouse.
Gather information about your financial accounts
Review your financial records, such as tax returns and bank statements. This will help you identify any accounts that may be unknown to you and ensure that you have a thorough understanding of your financial landscape.
Review insurance policies and benefits
Finally, do not overlook the significance of insurance policies and benefits, including health, life and disability insurance. If you are covered under your spouse’s employer-provided health insurance, you will need to plan for alternative coverage post-divorce. Additionally, consider any employer benefits like stock options or pension plans that may be subject to division in your divorce.
Taking charge of your finances during divorce
As you work through this checklist, you may discover aspects of your finances that you were previously unaware of or did not fully understand. Take this as an opportunity for growth and learning. Remember, the effort you invest now in understanding your finances will pay dividends as you transition into the next chapter of your life.
