How a person can protect their finances during a divorce

On Behalf of | Feb 21, 2020 | Divorce |

Having financial problems is one of the main factors that lead to divorce in Wisconsin and other states. After a divorce, individuals may experience financial fallout that can leave them struggling to pick up the pieces for many years into the future. Here are a few tips to help individuals stay in control of their investments during and after divorce.

After a divorce, it is common for individuals to no longer want their former spouse to be their beneficiary. A person should make changing their beneficiary one of their priorities as soon as a divorce seems imminent. This can help everyone involved to avoid a messy situation.

In many marriages, it is common for household tasks to be divided. This is also true when it comes to managing accounts and performing financial tasks. One partner may be responsible for paying bills and managing financial accounts. When a divorce seems like it is on horizon, it is important for each individual to have access to investment and other financial accounts. They should learn about how the accounts are set up, have access to login credentials and find out about financial assets they may be entitled to.

Certain accounts will need to be divided after the divorce. Both partners should be involved in decisions regarding splitting up retirement accounts and dividing taxable investment accounts, and each should be fully aware of any tax penalties that they may be subject to.

While a divorce can leave a person in a financially tough situation, understanding how a divorce will impact a person can help them prepare ahead of time and avoid some fallout. Some individuals decide to speak with an attorney. In addition to answering questions regarding the divorce process, an attorney may be able to help a person file divorce papers and represent them in court if it is necessary.