Divorce proceedings may have an effect on investment plans
Photo of Attorneys T. Noel Brooks and Jesse Baez walking outside.
Photo of T. Noel Brooks and Jesse Baez

Divorce proceedings may have an effect on investment plans

On Behalf of | Dec 20, 2021 | Family Law

A divorce could become the most stressful and upsetting life event spouses could endure. Dealing with the responsibilities of dissolving a marriage requires careful attention, considering the ramifications of assets distributions, settlements, child custody matters, and more. A distracted mind could falter in other areas of life, and Virginia investors may discover their financial well-being suffers.

Divorce and its impact on investment portfolios

Not surprisingly, the attention directed towards divorce proceedings could distract a spouse from following the market. If the divorce continues to drag on, one or both spouses may ignore movements in the market and not make decisions they otherwise would. For example, an investor may stop following developments in a particular sector and never make an investment he or she otherwise would, losing out on a potential windfall.

It is worth pointing out that “investments” could be much more than the stock market, options, precious metals, cryptocurrency, and the like. Business opportunities are forms of investment. Even purchasing collectible artwork might serve as an investment. Again, a complex divorce may undermine financial decisions someone would make under “calmer” times.

Divorce comes with commitments

When involved in a high-asset divorce, the spouses must accept the time commitment and mental energy required to arrive at a final decree. While taking time away from investment-related matters could be regrettable, doing so might be unavoidable. Perhaps working towards a swift and equitable settlement agreement could be the solution.

There could be ways to reach a preferable conclusion when settlement negotiations reach an impasse. Mediation might serve as an effective strategy to overcome disagreements.

Archives

-->