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Keeping control of personal finances during a divorce

| Oct 30, 2019 | Divorce |

It’s no secret that money problems are near the top of the list as to why Tennessee couples and others throughout the country divorce. Some divorced individuals blame debt and student loans on the reason for their divorce. Divorce can also leave individuals struggling to pick up the pieces in a financial sense. Here are a few things individuals can do to stay in control of their finances during the divorce process.

Financial accounts should be updated as quickly as possible in order to be sure that beneficiary designations are accurate. If a person does not want their ex-spouse to be the beneficiary on banking and investment accounts, they need to get in touch with financial professionals and designate new beneficiaries.

It is not uncommon for one individual in the marriage to be responsible for financial tasks, like paying bills and managing accounts. When a divorce is on the horizon, each partner needs to have full access to financial accounts. They need to have a good grasp on their assets and debts, including knowledge of account numbers, contact information and login credentials. Some accounts may need to have holds placed on them temporarily until the divorce process is finished.

It is common for most states to view retirement accounts as marital property. This means that when a couple goes through a divorce, the retirement accounts are likely to be split. It is important for each individual to understand any fees and taxes that may be triggered upon divorce.

It is also necessary to split investment accounts. Some couples may be able to do this by simply speaking with the financial institution and then making an agreement on how these investments will be split. Other couples need mediation. A family law attorney may be able to provide information about how a couple’s assets and debts could be split during a divorce.