A divorce can drastically change your finances. Everything from your debt-to-income ratio to your retirement plan may feel the impact of your changing relationship.
One of the many assets that require splitting includes your investment portfolio. Effectively managing your investments during this time may help you to maintain control over your situation.
Accessibility and organization
If your partner had the primary responsibility of overseeing investment accounts, you may have limited access to these assets. According to The Motley Fool, make sure you get full access to these accounts. Especially if your spouse has behaved dishonestly or unethically in the past, it is critical that you get access before he or she locks you out completely.
Once you have access, leave all of the assets in place. Moving things around, withdrawing funds or selling investment shares could compromise your case and jeopardize your settlement. However, make note of the assets you share and record any activity from your spouse. Organize all applicable financial documents and have them in a secure place that you can access throughout your divorce.
Penalties and transfers
Withdrawing assets against the terms of previously signed contracts could land you in serious trouble. You may incur costly penalties for early withdrawal which could cause tremendous financial strain. Working with your attorney, assess your options for splitting retirement benefits and other investment assets. You may end up agreeing to sell some investments and split the proceeds. Others, you may have the option of splitting and rolling your portion into a personal investment account.
Knowing your rights and refraining from frivolous spending can help you optimize your portion of the settlement. With careful planning and strategic management, you can minimize the impact of your divorce on your investments and your future.