Complex assets such as investments can be difficult to manage during divorce. When a person is in the middle of a high asset divorce, focusing on other matters might be more of an afterthought than a priority. However, since there are already financial implications associated with the divorce process itself, properly managing investments is important.
While there are certainly exceptions to the rule, California investors who are in or even past middle age might have more investments as well as more wealth tied to those investments than younger investors. Between 1990 and 2019, the divorce rate for those over 50 doubled while it tripled for couples over the age of 65. Investments often play a crucial role in financial support during this period of life, so it is important to maintain access to investment accounts. This is an especially good idea for partners who left financial matters up to their spouses. Without access to relevant information, an individual cannot be sure if his or her ex is taking improper actions, such as withdrawing funds.
Another thing to be aware of is possible tax implications of dividing investments. For example, a certain investment might produce a reliable income stream, but could also be taxable. When dividing up these types of assets, each person should consider whether they are capable of handling the associated taxes. A couple should also familiarize themselves with the processes for closing joint accounts and opening separate ones.
During a high asset divorce, it might feel as if there are thousands of tiny details constantly in motion. Focusing on one can mean making a critical mistake in another area. With so much on the line, leaving things up to chance is generally not advisable. Instead, speaking with an attorney who is experienced in California family law can provide valuable insight into the process.
