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How to manage the financial consequences of a divorce

Those in Oregon who are planning on getting a divorce will ideally plan ahead of time for the potential financial fallout it may bring. This could mean getting access to financial documents such as bank statements, tax returns and a spouse’s pay stubs. Doing so may make it easier for a person to determine how much money a household has and how accounts are currently structured. These details may play a role in how a divorce settlement is crafted.

It may be necessary to change the beneficiary designation on a bank or retirement account. Failing to do so could result in a former spouse inheriting an asset as opposed to a child or family friend. Prior to selling an annuity or cashing out a retirement account, it could be a good idea to speak with a financial professional. In some cases, taking these actions may result in triggering a taxable event.

Individuals who improperly take money out of a retirement account may also have to pay an early withdrawal fee. Individuals who want to move money from one brokerage to another may want to find out if the new brokerage offers the same products that their current one does. It may also be necessary to obtain a qualified domestic relations order before a retirement account can be divided.

Almost any asset that is accumulated during a marriage could be eligible to be divided in a divorce proceeding. Individuals who are thinking about getting a divorce may want to discuss their options with an attorney. This may help them learn more about the divorce laws in the state as well as whether a prenuptial agreement may still be valid. Divorces can be settled in court, through private settlement talks or with the help of a mediator.