Maple Grove Family Law Blog

It can be nice to dream of a fresh start after a divorce. For some, a new home is part of the future that they envision for themselves after making such significant life changes. However, a divorce can result in significant debt and changes to credit scores.

Understand more about some important considerations before purchasing a new home after a divorce.

Although you know divorce significantly impacts various aspects of your life, you may not be considering how it will affect your credit score. On the one hand, getting divorced does not directly reduce your credit score because your creditworthiness is not related to your marital status.

On the other hand, divorce can directly impact your finances, which can, in turn, affect your credit score. This could be because of trouble with paying bills, having joint accounts or dealing with a vindictive ex. Here is a look at each of these situations and how to deal with them.

The rate of people divorcing over age 50, known as gray divorce, is increasing. This increase may not surprise you, but what may surprise you are the problems that this presents. People who are older usually have more assets to consider during the asset division of the divorce.

One of those assets is their retirement accounts, including 401ks, pensions and social security. Typically, retirement funds saved during a marriage will be considered as part of the marital assets during divorce and subject to some type of division.

Minnesotans who are obligated to pay child support, and the custodial parents who are supposed to receive that support, must be aware that there are certain penalties that the state will assess if there are delinquent payments. Child support enforcement comes in a variety of types. One that can be particularly problematic for the delinquent parent is a driver's license suspension. Understanding when this can come about and how it can be rescinded is imperative to a person's life.

The Minnesota Department of Public Safety can issue a driver's license suspension for being behind in child support if the request is made by the child support office. For this to happen, the following two factors must be in place: the parent owes at least three times the monthly support requirement, and there is a written payment plan that had been approved by the office, a child support magistrate, or the court, and the parent is not in compliance with it. The parent will be informed through the mail that the suspension is moving forward.