Let's be honest, going through a divorce can have some rather difficult steps that are necessary to go through. Just as money matters can cause tension in the marriage, they can also cause tension in the divorce as well; especially when it comes to dividing your assets and investments. For those of you dealing with investments, or any other form of money matters, it is encouraged to talk to a trusted divorce attorney and perhaps even a financial advisor who can lead you down the right path.
For example, it is very common for spouses to have numerous investments to help secure their future. Whether it is a stock in Apple or Starbucks, or anything else, how you divide this may seem like a headache in of itself. For this reason, financial advisors who have the expertise with investments can help you and your spouse work through the kinks in order to divide in a manner that is fair for each of you. First off, you will want to contact a trusted divorce attorney in your area, who can then point you in the right direction for your financial concerns.
When addressing the specific issue of investments and mutual funds in a divorce, it is absolutely critical that the details are worked through with a fine tooth comb. One of these important aspects being which of your assets are taxable or tax deferred. A financial expert, Paul Schatz, claims that this step is vital in order to protect your assets. When there is a tax deferred account holding all of your money, when you and your spouse file for a divorce, there is a chance that you will lose money in order to pay off the taxes when separating the funds. According to his many years of dealing with particularly high income divorces, many spouses have lost close to half of their investments after paying back the countess taxes due to overlooking this crucial detail.
According to Schatz, in order to protect your financial assets is to not withdraw money from these accounts during the divorce. Whether it is your 401K, IRA or another tax-deferred asset, refrain from doing so and you may be able to protect some of your money in the divorce. He acknowledges the fact that in a divorce all assets are not created equally, and therefore the divorce process can make it more difficult. For this reason hiring not only a divorce attorney to protect your rights, but also a financial advisor to help ensure your large assets are protected and properly separated just may be the best option for you.
In many cases when dealing with a divorce, compromise is always an encouraged option. However, despite that being the ideal situation, the emotions and tensions in a divorce can be so high that compromise is not an option. Whatever the case may be for you, making sure you have someone who is skilled both in legal and financial matters is going to help you significantly along the way. The division of assets can be a tricky aspect of any divorce, whether for a smaller or higher income family, and it is something that is to be taken very seriously.
Remember, when dealing with the division of your assets, focus on your taxes; because this is often the area that leads to numerous people losing their money in the event of a divorce. For more information on a filing for divorce contact the Meyers Law Group today and we will walk with you every step of the way! We understand how hard this time may be for you and your spouse, which is why we are dedicated to offering the legal representation and guidance that any person deserves during a divorce. Call us today!