Being financially informed reduces stress during divorce

| Mar 6, 2020 | divorce

Most marriages begin with a happy celebration and with both parties assuming they will enjoy a long, successful union. However, in reality, many marriages do not survive the long haul. In addition to the inevitable emotional impact, many divorcing couples endure significant financial fallout during and following the divorce process. For this reason, Missouri couples who are considering a split or are currently involved in the divorce process are wise to heed the following tips to help them understand and control their investments.

Likely, many divorcing people do not want their spouse to be the beneficiary on their investment accounts. If this is the case, they should update these designations. Also, it is important for a spouse who has not controlled the marital finances throughout the marriage to learn all details necessary to access all accounts, including log-in credentials, account numbers, contact information, etc., as well as whose name is on each account.

Many divorcing people may immediately think of selling assets during a marital split, but it is important to be aware of any penalties or tax consequences of doing so. People thinking of selling should also keep timing in mind; for example, selling during a market decline would likely not be smart. Retirement funds accrued during the marriage are generally considered marital property, which means they may be split between spouses in a divorce. With this in mind, many divorcing couples include specific terms in their divorce or separation agreement as to how these funds will be treated. As with other assets, people should keep in mind any taxes or other fees that may apply when dividing the account.

While multiple factors contribute to stress during the divorce process, many Missouri couples will likely agree that finances are near the top of the list. To reduce stress levels and to ensure a fair settlement for both parties, divorcing individuals are smart to be sure they are financially informed. Experienced family law attorneys are available to assist in negotiating all of the financial details, as well as all other necessary aspects of divorce.