How Divorce is Like a Recession – Minnesota Family Attorney

March 12, 2009

Minnesota Family Attorney Discusses The Financial Recession of a Divorce 
Recessions are financially sobering affairs.  The value of your assets decrease while the uncertainty of your paycheck increases.  In a recession, you need to take charge of your financial affairs in order to ensure that you are not spending money needlessly. 

Divorces are no different.  The first step to a successful divorce is to gather knowledge about your finances.   Your lawyer will need your tax returns, bank statements, and credit card statements for the last three years.  She/he will also need current investment and retirement account statements.  If you claim a non-marital interest (because you owned it prior to marriage or it was bequeathed or gifted to you) in any financial account, your lawyer will need to see documents that reflect the value of the asset when you married or when it was gifted to you. 
Consider having your home appraised.  The cost of a home appraisal is minimal compared to the uncertainty of the market.  If you are cash strapped, ask a real estate agent to prepare a market analysis for you. 
If you have an interest in a defined benefit pension, you should know before you begin negotiations with your spouse that its present value may be higher than the value listed on your pension statement. 

Next, consider that you may be able to negotiate payoffs with various creditors.  You may be able to obtain a lower interest rate or some other concession that will reduce the financial pain that is inevitable when you split one home into two. 

It may be that you cannot obtain certain information from your banks and/or creditors, because the accounts are in your spouse’s name.  You may be able to obtain a substantial amount of information by looking around the house.  If not, do not despair.  Your attorney can obtain this information through a process called “discovery” where the other party is required to ask questions and provide documents requested by you.

Ultimately, however, the more work you do now, the less work your lawyer will have to charge you for. 

My favorite resource for financial advice is www.consumerist.com.  You should be able to find a lot of tips there for lowering your monthly payments and negotiating lower interest rates, as well as reducing your debt, and obtaining the best customer service from unfriendly customer service professionals.

 

Jennifer Moore
Moore Family Law, P.A.
3350 Annapolis Lane North, Suite C
Plymouth,  MN 55447
(763) 951-7330
Fax:  1-(866) 354-3531
jennifer.moore@moorefamilylawMN.com
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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