Investing is a smart decision for many people with disposable income. Married couples thinking about the future often invest as a way to make the most of their income and assets. They can potentially generate streams of passive income. They can increase the value of their current holdings as well.
Many people who invest diversify their portfolios to protect against economic changes that could undermine the value of certain resources. Common investments range from real estate and stocks to physical assets like gold or digital investments, which have become increasingly popular in recent years.
While those assets can be a source of revenue and financial stability, they can become a stumbling block during divorce proceedings. Spouses preparing for the end of a marriage may have a difficult time settling property division matters because of their investment holdings.
What challenges often stem from investment holdings during divorce?
Disputes about what’s shared and separate
Frequently, people who invest make it a lifetime practice. In some cases, an investment account may have predated a marriage. Spouses may need to go over records thoroughly to validate what assets are marital and which ones are separate. They may find themselves disagreeing and in need of support while analyzing documentation.
Disagreements about what investments are worth
The process of addressing investments during property division proceedings is not simple. Spouses have to determine what those investments are worth. Frequently, establishing a fair market value for investments begins with setting a valuation date. From there, professional support may be necessary to determine what different investments may have been worth on that date.
Uncertainty about the best solutions
There are numerous different ways that couples can address their shared property in a divorce. They can directly divide certain assets, including investment accounts. They can also potentially use the value of some assets to offset the value of other resources. Selecting an appropriate approach can be a challenge, as spouses may disagree about the best option available.
People with complex marital estates often need to prepare for a more challenging asset division process. Identifying resources that can be difficult to split can help spouses set goals for the divorce and ready themselves to negotiate or litigate.