Many individuals in California may wish to take steps to protect their financial futures upon making the decision to dissolve a marriage. When forming a strategy for divorce proceedings, one may find it helpful to gain an awareness of all marital assets and the values of each in turn. However, even after a divorce is finalized, individuals may still need to take certain precautions to protect their finances, such as updating information on retirement accounts.
When considering retirement accounts and their potential impact on the outcome of a divorce, the first step is to find out if the account is marital or separate property. Although all assets are divided equally between spouses in community property states, such as California, a person might be able to retain possession of an account that retains its separate identity. However, even if the account remains separate, one's former spouse may still be listed as a beneficiary.
Failing to update beneficiaries on accounts can lead to conflict in the future. Fortunately, this scenario may be easily avoidable if a person makes the necessary adjustments to accounts. However, a person may find it advisable to wait until a divorce decree is obtained before making the necessary adjustments, as doing so prior to finalizing a divorce could lead to undesirable consequences.
Going through the end of a marriage can be stressful and it can be challenging to know all the necessary changes to make once a divorce is finalized. Fortunately, there are attorneys that can provide a person in California with guidance on every aspect of the process. An attorney can help a client gain a better understanding of the topics to address at the end of a marriage and subsequently assist him or her in navigating the process.