Shoring Up Your Financial Situation After a High Asset Divorce

 Posted on June 07, 2019 in High Asset Divorce

If you are recently divorced or are still in the process of dissolving your marriage, you may be nervous about your financial future. Fortunately, there are steps that divorcing parties can take to help them redefine their financial situations after divorce, so if you are considering divorce and have questions about the state of your finances after your marriage is dissolved, you should strongly consider speaking with an experienced high asset divorce lawyer who can explain your legal options.

Preparing Yourself for Financial Upheaval

Even the most amicable divorces come with a fair amount of turmoil, especially when it comes to finances, which the parties can expect to drastically change going forward. Some of the most common changes include:

• A potential decrease in net income;
• The loss of half of your assets;
• The need to relocate;
• The need to reevaluate your estate plan, taxes, and beneficiary planning; and
• The need to learn new financial skills, such as investing and budgeting.

Fortunately, divorcing parties do not need to go through these changes alone, but instead can rely on a team of financial planners, forensic accountants, and experienced high asset divorce attorneys for assistance.

Retitling Your Assets

One of the first things that a newly divorced person should do to shore up their finances is to retitle any non-retirement assets, including real estate, brokerage accounts, and bank accounts. These assets should be placed under your own name or placed in a trust, which can usually be achieved by opening up a new account and transferring your share of funds into the new account. It’s also important to take your name off of any joint accounts at this time, including accounts for joint credit cards or utilities.

Splitting Retirement Accounts

Upon divorce, a couple’s attorneys will provide the parties with a Qualified Domestic Relations Order (QDRO), in which the couple's retirement assets will be divided. This document will need to be presented to the custodians of your retirement accounts, who will then be able to roll your share of the funds into your own separate account. It may also be necessary to work with the plan’s administrator, especially if the parties are both young and still employed.

Updating Beneficiaries

Most married couples name each other as their retirement and life insurance beneficiaries. However, this can pose difficulties after divorce, so most divorcing parties are encouraged to change the names of their beneficiaries on any IRAs, 401(k) accounts, and life insurance policies. For those with minor children, establishing a trust, in which the retirement assets will be held until the children come of age, is one of the best ways to ensure that your loved ones receive your retirement benefits in the event of your untimely passing.

Experienced Leander High Asset Divorce Attorneys

To speak with one of our own dedicated Leander high asset divorce lawyers about how to protect your financial future after divorce, please call Powers and Kerr, PLLC at 512-610-6199 today. A member of our experienced legal team is standing by to address your questions and concerns.

Source:

https://www.forbes.com/sites/jefflanders/2018/02/12/a-checklist-to-help-you-manage-post-divorce-finances