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Navigating Financial Challenges in Divorce

Cleaning Out the Bank Accounts, Maxing Out the Credit Cards

Navigating Financial Challenges in Divorce

January 17, 2024

By Johnson/Turner Legal

Navigating Financial Challenges in Divorce

January 17, 2024

By Johnson/Turner Legal

Navigating Financial Challenges in Divorce

The Financial Stress of Divorce

Divorce is not only emotionally taxing but also places a significant strain on finances. Restructuring the division of bills and expenses becomes a critical task. Issues may arise when one spouse depletes bank accounts or incurs substantial credit card debt, adding complexity to the financial separation. You are not along in navigating financial challenges in divorce.

Equitable Distribution in Minnesota

In Minnesota, a judge aims for equitable distribution of marital assets and debts during divorce proceedings. This involves referencing Minnesota statutes to determine how to divide property and debts. It’s crucial to understand that an asset or account in one spouse’s name doesn’t automatically classify it as separate property. Generally, assets and debts acquired during the marriage are considered marital property and are subject to division. This holds true even if only one spouse contributed income. If a spouse transfers joint account funds to a private account, the judge may order a portion of these funds returned to ensure equitable distribution.

Credit Card Debts and Spending Habits

Credit card debts often become contentious in divorce, particularly when spouses have contrasting spending habits. Regardless of whose name is on the card, debts incurred during the marriage are usually viewed as marital liabilities. If one spouse engages in excessive spending out of spite before the divorce, the judge might assign the responsibility for these charges solely to them.

Seeking Solutions for Financial Issues in Divorce

Divorce involves many complex financial considerations. If you’re facing these challenges, our team is here to help. Contact us at (320) 299-4249 to discuss your divorce and explore effective solutions for your financial concerns.

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