Gathering financial information for your divorce can be confusing if you aren’t quite sure what you have and what it all means. Once you know you’re moving down the path of divorce, you want to start collecting every piece of financial information you can get your hands on. There are several different types of investment accounts; you have Individual accounts, joint accounts, IRA’s, 401ks, pensions, annuities, and the list goes on and on. After tax accounts are normally the easiest to split and will often offer the easiest liquidity, or accessibility, with minimal tax repercussions. Retirement accounts can be a little trickier. Employer plans, like a 401k, will typically require a Qualified Domestic Relations Order, or QDRO, that must be filed with the plan administrator and courts before the account can be split. This process can take some time and carry an additional cost. Annuities, pensions and other alternative investments are quite complex, they must be individually researched to determine how and if they can be split. They also require special attention to determine their true value and know that the value on the statement is likely not the true value. We’re just beginning to scratch the surface of the types of financial questions you may face throughout your divorce, that’s why it is imperative that you add a Certified Divorce Financial Analyst® to your team. A CDFA® will guide you through the financial intricacies of your divorce by providing clarity and settlement solutions to get you to your best financial result.
Remember, when it comes to divorce, you only have one chance to get it right. Please connect with me today to get your individual questions answered.