Initial Steps to Take After Deciding to Divorce
You’ve decided divorce is the right option for your family, but you’re unsure what to do next or how to protect your financial interests. The actions you take immediately after deciding to end your marriage and how you conduct yourself while the divorce proceedings are in process can impact your case and the result, especially in a high-asset divorce. The traditional divorce and property division process isn’t always equipped to handle high-net-worth cases or those involving nontraditional assets, such as business interests or international real estate holdings. Careful preparation and early guidance from an experienced high-asset divorce attorney can help protect your rights and financial future. Below are some initial steps to take once you’ve decided to file for divorce.
Meet With an Experienced High-Asset Divorce Attorney
The most crucial step to take as soon as you are even considering ending your marriage is to meet with a divorce attorney who has experience with high-asset divorces. They can ensure you know your rights, how Minnesota deals with property division, and what to expect from a potential settlement. Meeting with an attorney early in the process can also ensure that you know what you should and shouldn’t do, such as whether it’s okay to move marital assets to a separate bank account. They will also review any prenuptial agreement with you to determine how that may impact the divorce and whether you may need assistance from other specialists, such as a forensic accountant.
Get Copies of Your Financial Records
If you don’t already have copies of your financial records, including the last few statements, account numbers, and balances, the sooner you do this, the better. It’s not uncommon for tensions between the two parties to escalate as the divorce proceeds, and it can be easier to get this information early on. Getting a copy of your tax returns for the last few years and copies of any property deeds or loan information is also a good idea.
If you’re unsure what assets you have or your spouse or an advisor took care of the finances, it can be difficult to know where to look for this information. An attorney can help you get the needed records and hire a forensic accountant to uncover unknown or hidden assets.
Inventory Both Nonmarital and Marital Assets
Spend some time making a list of all your assets, including those you believe would be considered marital property and those that would be nonmarital property. For each, include the date it was acquired and the circumstances if it’s something specific, such as an inheritance. It can also be helpful to get a preliminary valuation of items like jewelry or artwork. Do the same with debts, as these are also allocated in the property division process.
It’s essential to be aware that Minnesota generally presumes that all assets or debts acquired during the marriage are marital property unless they were part of an inheritance or a gift to one party. This can include property held only in one person’s name, such as a vehicle or real estate. If you have questions about nonmarital versus marital property, an attorney can provide more information.
Understand How Spousal Maintenance or Child Support May Impact Your Finances
Child support and the potential for spousal maintenance payments can have a significant impact on any divorce, but this is even more true when a couple has a high net worth. This can result in adjustments to child support calculations and large spousal maintenance payments that can affect your future. Child support in Minnesota takes many factors into consideration, including the monthly income of both parties, their potential income, if any,, how many children are involved, and whether a spousal maintenance order is in effect.
Spousal maintenance is a bit different and generally only comes into play when one party doesn’t have the income or earning potential to be able to continue the standard of living established during the marriage. Spousal maintenance is based upon several factors including the length of marriage, and recently the statute has been modified to include presumptive lengths.
An attorney can help you understand whether these need to be considered in your divorce proceedings and what impact they may have on your future finances.
Don’t Make Any Major Financial Changes
A divorce is a major life change, and it’s tempting to want to go on a vacation to get away from everything or make a large purchase, such as a new house, to get a fresh start. But it’s critical not to make any big financial changes until the divorce and property division are settled. Making any attempt to transfer or dispose of marital assets before the divorce is finalized can cause problems later on, and you may be forced to compensate your spouse for their share of those losses. This includes even before the divorce is filed. As long as one party has noted that they are thinking about filing for divorce, no transactions should happen outside of normal activity, such as paying a mortgage or going on an already scheduled vacation.
If you have high-value or complex assets, you need an attorney who is prepared to fight for your rights and ensure you get what you’re entitled to in an equitable division of the marital property. Call Barbosa Law Group PLLC at 612-564-0137 to schedule an appointment to discuss your situation with an attorney and find out what you can do to protect your finances now and after the divorce is final.
