Building your investment portfolio can be a key way to build healthy finances and provide for your future needs. However, if you and your spouse decide to part ways, dividing the investments made during your marriage may be challenging. How might divorce affect your investments?
Do you have a complete understanding of your investments?
If your spouse took a more active role in your investments during your marriage, it is essential for you to access these accounts and organize any documents related to your assets. This information can be central to identifying the investments that the court will divide during your divorce.
Should you sell your investments or divide your holdings?
Just as the court divides your savings and your other possessions, the court will likely split the investments added to your portfolio during your marriage. When dividing your portfolio, you may divide those assets into individual accounts or liquidate your investments and move forward with those funds for future investments.
As the Financial Industry Regulatory Authority (FINRA) notes, you should carefully consider the impact of taxes and penalties when determining whether to sell your investments. Depending on the timing of your divorce and various other factors, selling your assets could have a detrimental effect on the value you receive.
What is the right strategy for your financial situation?
Reaching a solution for dividing your portfolio in divorce depends on your financial goals, the types of investments you and your spouse made, and various other factors. You may benefit from discussing your financial strategies with experienced professionals during this process to identify which approach best protects your investments and your financial future.
After discussing your options with a financial professional, discussing how it can impact your divorce with an experienced family law attorney can be a great next step.