5 Tips for Managing Investments During a Divorce
Finances can be a sore subject and are often one of the primary reasons spouses file for divorce. Even so, managing and safeguarding your investments and assets during divorce can be critical to both your case and your future.
Successfully protecting your investments takes planning and preparation. Here are five key tips for managing your finances and investments during your divorce.
1. Get a Full Picture of Your Finances
While you may have a general picture of your finances and assets, it’s crucial to understand your portfolio in greater detail when it comes to divorce. This is particularly true if you’ve let your spouse manage your finances in the past, and aren’t entirely sure what you have.
Make sure to collect important financial documents, as these are necessary for your divorce and can assist with managing your assets. In addition, get access to login credentials for your accounts, whether banking, investment, or retirement accounts.
Changing usernames and passwords may be necessary, especially if your spouse has access to your personal accounts. Log in to review your balances, returns, and performance, and review the state of your investments and assets.
2. Update Your Accounts
Married couples often share bank and savings accounts. At some time during your divorce, you should either open your own accounts, or if your spouse is on your accounts, remove them.
If you open a new account, make sure to change your auto payments and direct deposit information to your new account. Updating and opening new checking and savings accounts can not only help you avoid future hassles, but also assist with property division — one of the critical matters to address during divorce.
3. Amend Your Estate Plan
If you created an estate plan during your marriage, your spouse is likely named in some or all of your documents. This means that if you’ve created a will, trust, or powers of attorney, you will need to thoroughly review these estate documents to change your beneficiaries and any other details that need revision.
Changing the details of your estate plan can help protect your assets and prevent any possible legal battles in the future.
4. Understand Potential Tax Consequences
Making any changes to or selling assets could trigger tax consequences. Divorce may also have an impact on your taxes. Therefore, before doing anything with your investments, do your research to avoid any preventable repercussions.
5. Seek Professional Guidance
Dealing with finances and investments can be overwhelming, especially if you don’t know what to do or where to start. Getting help from a knowledgeable attorney can help you get a grasp on your finances and manage your investments during your divorce for the best possible outcome.
Rely on Your Divorce Attorney for Guidance
Taking these five important steps can help you better protect your investments in any divorce — and a skilled divorce attorney can make that process as simple and seamless as possible.
The seasoned team at The Gucciardo Law Firm, PLLC has years of experience representing clients during divorce proceedings throughout Michigan. Your finances and investments play a substantial role in your divorce, and we can provide the sound advice and direction you need to successfully protect your assets.
Too much information?
We focus exclusively on family law matters so we are always available to answer your questions and help.