If you and your spouse in Tennessee have recently separated or gotten divorced, you will know firsthand just how deeply this experience impacts your life. Every facet of your daily life and long-term plans are touched including your finances, your residence and even your social circle. It can be hard to focus on all of the things you need to address at this time and an estate plan might be one of those things you put aside for the moment. This, however, should not be done long-term.
If you are like many people in Tennessee, you may have experienced a period of financial stability and even growth in the last decade as the nation and the world emerged from the most recession economic downturn. Regardless of the state of the economy, however, when you get divorced, your financial situation can take a turn for the worse. This can be a very hard situation to adjust to, especially if you have not generally had to worry about your financial health before.
If you and your spouse in Tennessee have made the choice to end your marriage, you will soon realize that this decision has an impact beyond just the two of you. Certainly, this is true if you have children together but even your other extended family, neighbors, friends and colleagues will at some point come into the picture. For you, this can be a challenge as you may not know how to field questions or discuss this change in your life. It will be important for you decide how you will talk about your divorce to all of these people.
Married couples in Nashville that elect to seek a divorce will often begin to look forward to certain dates. These may include the date that their divorce proceedings officially begin, the date their divorce is finalized, or the date that the stipulations of their divorce settlement officially begin. One important date that is often overlooked, however, is the valuation date of their marital assets.
A pension plan may be the most substantial asset of many Tennessee marriages when couples forego other methods of investing or saving in favor of participating in an employer-sponsored plan. Typically, these types of plans, such as a 401(k) are considered an “extra” benefit of working for an employer who invests in its employees in this manner, allowing them to earn full vestment, or ownership, after a period of time, which is typically five years. When a couple faces divorce, diving up this asset can sometimes be difficult, depending on several contributing factors, including the type of plan and its components. In high-asset marriages, a plan may include employee stock options, profit sharing and additional investment opportunities.
During your divorce proceedings in Nashville, you likely had to fight to keep those marital assets that you felt that you were entitled to. Now that your divorce has been finalized, you no longer have to worry about any supposed claim your ex-spouse may have to them, right? Yet what if you have gifted assets and properties to your now ex-spouse in your will, and you forget to amend said will before you die? Many people come to us here Rogers, Kamm & Shea in this exact situation. Like them, you will likely be pleased to know that the law has accounted for yours (or any decedent's) inaction in this scenario.
Not all Tennesseans go through trying times during a divorce, but those who have know the woes of dividing property and assets. On top of the whirlwind of paperwork, court procedures and other aspects of marital separation, many can hit obstacles when reaching this financial stage. Below are a few pointers on high asset divorce, as well as some of the hidden details.