A primary divorce concern is protecting your financial rights, and few things make the process more challenging than complicated investments. Fortunately, there are six primary means of managing these important financial matters throughout the divorce process. One step that no one going through a divorce involving significant investments should skip is working closely with a dedicated Chicago divorce attorney who has a proven track record of successfully guiding cases involving considerable investments toward advantageous resolutions.
Most investments, such as retirement accounts, have beneficiaries attached. At the conclusion of your divorce is the time to update these designations. While your spouse is almost certainly currently listed, it’s unlikely that you’ll want to maintain this status quo upon entry of a judgment for dissolution of marriage. However, if there are minor children involved then maintaining certain beneficiary rights may remain in place for your former spouse, especially if there are child support or child expense obligations. Taking care of this matter now is the most prudent approach.
If you are not the spouse who handles your household’s finances or who has more control over this matter, it’s time to gather the financial documentation that you need, including documentation related to investments. Your spouse is ahead of the game on this one, and as your divorce proceeds, obtaining these documents can become more challenging. Take the time to address the matter now.
Before you begin busily addressing the equitable division of your marital investments, it’s important to carefully consider the tax implications. Investment-related actions can trigger complicated taxable events, which makes doing your due diligence well worth the effort. However, an experienced Chicago divorce attorney should be able to explain and work through many of these to ensure they are non-taxable events in conjunction with your divorce.
You’ll also need to address the matter of joint accounts, and there are a variety of processes involved. For example, joint brokerage accounts typically must be closed and reopened as separate accounts in each spouse’s name.
If your retirement accounts came with you into the marriage, they might be separate property, but any increase or contributions made in the value will likely be considered marital, which makes the division that much more challenging. Options include:
While every divorce involves its own complications, addressing investments has a way of becoming very complicated very quickly. With a dedicated divorce attorney in your corner, you’ll be well prepared to address the property division at hand with the peace of mind that comes from knowing you’re in good hands.
The practiced Chicago divorce attorneys at WARD FAMILY LAW have a wealth of impressive experience helping clients like you protect their financial rights as they relate to complex investments, and we can help you, too. When it comes to your investments and divorce, being proactive is key, so please don’t put off reaching out and contacting us for more information today.
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