Making the difficult decision to file for a dissolution of marriage can bring with it a great deal of stress. Not only are you facing the prospect of beginning a new chapter of your life, but you may also be struggling to responsibly manage your existing investments. For divorcees in New York, knowing how to care for investments can put individuals in a position to financially prosper once the marriage is officially over.
Get access to all your investment accounts
It is not uncommon for one spouse to be an investor while the other oversees all the investment accounts. However, if you do not have access to every investment account that bears your name, you need to change that immediately. If the accounts have your name on them, you should have a secure list of account numbers and passwords so that you can monitor them.
Consider tax ramifications
The court may order you to liquidate certain assets, including investment accounts. However, if you are considering liquidating any of your investments, you should also consider the tax ramifications. There are also penalties for liquidating certain types of investments such as retirement accounts, annuities and more.
Update beneficiaries on your accounts
Depending on the circumstances surrounding your divorce, you may not want your former spouse to be the beneficiary on any of your investments. If you make the decision to remove your former partner’s beneficiary designation, you have to do so in writing for the change to be legally enforceable. This is a process you can begin before your divorce is final.
One of the most important things to do during a divorce is surround yourself with a team of professionals to handle the financial and legal details. A divorce attorney may help you review your assets and file the needed paperwork to protect them.