Getting divorced often means you must split your finances and investments too. The idea of losing value can cause uncertainty and disappointment, especially as you watch your long-term goals crumble.
Knowing how to protect your investments can help you make strategic decisions to hopefully minimize the repercussions of your split on your future.
Take inventory of what you have
Assess the investments you have. Know where your money is and how to access investment accounts. This is particularly important if your spouse was solely in charge of managing shared investments. Knowing what you have can give you an idea of how to advocate for a fair settlement. According to FINRA.org, in anticipation of a divorce, collect information including login credentials, account numbers and contact information for the entities who manage your investments.
Know your ownership options
Depending on your divorce and the types of investments you have, you might have the option to roll your settlement into a personal investment account. However, use caution when doing this so you can avoid penalties for early withdrawal. Never spend settlements that come from shared investments. Rather, transfer what you have directly into a personal account so you can begin rebuilding your portfolio’s value as quickly as possible.
Begin rebuilding immediately
While it can be disheartening to watch your finances change so drastically, taking a proactive approach to rebuilding can make a tremendous difference in your future. Refigure your budget. Set new goals for your future. Do what you can to gradually save.
Having investments is an excellent way to optimize the money you have. Your ability to think strategically during a volatile time like divorce can give you the upper hand in rebuilding your wealth despite the circumstances.