The Dangers of Divorcing a Day-Trader: How to Protect Yourself Financially
If you are married to a day-trader, it is important to understand the potential dangers of a divorce. A day-trader’s income can be extremely volatile, and this can create a lot of financial stress in a marriage. There will be times when your spouse makes a lot of money, and there will be times when they lose money. This volatility can cause financial stress in a marriage, and it can make it difficult to budget and plan for your future. In this blog post, we will discuss some of the ways that you can protect yourself financially if you decide to divorce your day-trader spouse.
Conduct a Complete Financial Analysis
Day-traders tend to fall into one of two categories: (1) those who day-trade on the stock market as a side-hustle or hobby, or (2) those who consider day-trading his or her full-time occupation. Regardless of which type you are married to, it’s critical that you find out everything you can about your current financial situation before you begin any divorce proceeding. This is the first and absolutely essential step in protecting your financial interests during a divorce.
I cannot overstate the importance of knowing exactly what assets and debts are in your name and your spouse’s name. You also need to have a clear understanding of what you each earn consistently on a monthly basis and where that money is allocated each month. Once you have this information, you can begin to develop a plan for protecting your financial interests during the divorce process.
Consider Hiring a Financial Expert
If you don’t feel confident about tackling the financial issues on your own, consider talking to your attorney about hiring a financial expert to help you throughout the divorce process. A good financial expert, typically a forensic accountant, can help you understand the complex financial issues involved in a divorce, especially when your spouse may have been playing loose and fast with marital assets.
These experts can help you develop a plan for identifying and protecting the assets still available, as well as develop safeguards to ensure your spouse can’t access assets that would financially ruin you if they were lost. Having this person already familiar with the details of your financial assets during the divorce process makes it easier for them to help you build a post-divorce budget once the case is over, too.
Consult with a Tax Advisor Before Agreeing to Settle Your Case
Don’t ever feel rushed to settle your case. It is very important to understand the tax implications of divorcing a day-trader, as they often have a lot of deductions that they can take on their taxes related to their investment activities. Past tax forms filed with the IRS or your state revenue department may also be great ways to track the losses of assets you may not have been aware of during the marriage.
You should speak with an accountant or tax attorney to understand the tax implications of divorcing and how or if any of those consequences will affect your post-divorce tax situation. This will help ensure that you are not getting taken advantage of by a spouse looking to avoid the negative downsides of risky investments.
Divorcing a day-trader or anyone who makes risky investments using marital assets can be a complex, difficult, and even scary process. Taking the time to understand the potential dangers and being proactive about protecting your financial interests can help minimize the fear. Also, hiring an experienced team of professionals will help protect your financial future to set up the best post-divorce life possible.
If you and your spouse are considering separation or divorce, don’t make any decisions about how to proceed before talking with a trusted family law attorney. Your divorce and any settlement you create will be subject to your state’s divorce laws. Without discussing your situation with an attorney, your agreement may not be what you want or what is beneficial to your future.
If you’re in South Carolina, it’s important to contact an experienced family court attorney like J. Benjamin Stevens today to discuss your specific situation. Even if you aren’t in South Carolina, Mr. Stevens is happy to offer referrals to a well-qualified attorney located in your state.
Mr. Stevens is a Fellow in the prestigious American Academy of Matrimonial Lawyers and the International Academy of Family Lawyers, and he is a Board-Certified Family Trial Advocate by the National Board of Trial Advocacy. If you or someone you know is facing a divorce, separation, child custody, visitation, or other family law case, contact our office at (864) 598-9172 or SCFamilyLaw@offitkurman.com to schedule a consultation.
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Contact our office at (864) 598-9172 or SCFamilyLaw@offitkurman.com to schedule an initial consultation.
ABOUT J. BENJAMIN STEVENS
Ben.Stevens@offitkurman.com | 864.598.9172
Aggressive, creative, and compassionate are words Ben Stevens' colleagues freely use to describe him as a divorce and family law attorney. Mr. Stevens is a Fellow in the prestigious American Academy of Matrimonial Lawyers, the International Academy of Family Lawyers, and is a Board Certified Family Trial Advocate by the National Board of Trial Advocacy. He is one of only two attorneys in South Carolina with those simultaneous distinctions. He has held numerous leadership positions in the AAML, and he currently serves as one of its National Vice Presidents. Mr. Stevens has a statewide practice and regularly appears all across South Carolina. His practice is focused on complex divorce and child custody cases.
ABOUT OFFIT KURMAN
Offit Kurman, one of the fastest-growing, full-service law firms in the United States, serves dynamic businesses, individuals and families. With 17 offices and nearly 250 lawyers who counsel clients across more than 30 areas of practice, Offit Kurman helps maximize and protect business value and personal wealth by providing innovative and entrepreneurial counsel that focuses on clients’ business objectives, interests and goals. The firm is distinguished by the quality, breadth and global reach of its legal services and a unique operational structure that encourages a culture of collaboration. For more information, visit www.offitkurman.com.
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