Divorcing couples often have a lot of things to discuss and separate. Factors including the length of their marriage and individual relationship roles can also impact how many assets there are to split.
Shared bank accounts, retirement benefits and investment portfolios are just some of the assets that most couples share. For couples with high net worth, the concern of losing investments can create significant stress and uncertainty.
Taxes and fees
The biggest mistake that divorcing couples can make is to withdraw funds from their investment accounts or opt to spend their settlement. Even with a divorce underway, an early withdrawal that violates the terms and conditions of an investment will undoubtedly result in costly taxes and fees.
People can avoid such consequences with adequate research and preparation. According to The Motley Fool, some steps divorcing couples can take include the following:
- Gain individual access to all investment accounts
- Notify financial institutions of divorce and request closure of joining accounts
- Negotiate a settlement of assets under the direction of the courts
- Clarify the allocation of investment funds into individual accounts
- Follow protocols for the transferal of funds from joint to personal accounts to avoid penalties
Beneficiaries and goals
Another step that couples can take to protect their investment accounts is to proactively update their beneficiaries. An ending marriage could influence other relationships and require couples to completely overhaul their beneficiary list.
Immediately after announcing their divorce, people should take control of their financial future. According to U.S. News, an ending marriage allows individuals to regain autonomy and create their own retirement plans. With professional guidance and customized strategy, people can prevent divorce from robbing them of wealth and happiness.