On behalf of The Law Office of Gustavo E. Frances, P.A.
Communities across the United States are grappling with the effects of Covid-19. Most people are rightfully concerned about the health and well-being of themselves and their loved ones. However, the stock market has also seen a dramatic decline, and this could significantly affect a person’s assets during their divorce. At The Law Office of Gustavo E. Frances, our Fort Lauderdale divorce attorney wants to discuss how coronavirus could impact your separation process.
Covid-19 Is Causing Havoc On The Stock Market
News of this stock market ups and downs over the last few weeks has gone hand in hand with news about health surrounding Covid-19. In February, investors were celebrating all-time stock market highs. Now, as of this writing, the stock market is nearly 30% below those high marks.
With so much uncertainty surrounding coronavirus and how much of an impact it will have on the economy, the stock markets have been unable to find stability. Investors are spooked, and this can have severe repercussions on a person’s investment and retirement accounts. Unfortunately, this can also affect asset distribution for divorcing couples.
Why Does This Matter For Your Divorce?
Florida operates under an “equitable distribution” well when it comes to property division during a divorce. This means that all property will be divided between the spouses in a fair and equitable manner, though this does not necessarily mean there will be a 50-50 division of property. Included in those assets are retirement and investment accounts.
When it comes to the stock market, a separating couple’s assets could be greatly affected by the coronavirus. Many people may not think that their assets are tied up directly in the stock market. However, anyone with an investment or retirement account will be greatly affected by market ups and downs.
For example, an investment portfolio could be directly invested in stocks. However, the portfolio could also be indirectly invested in the stock market through mutual funds or ETFs. A person’s retirement account will also likely be impacted by the stock market. This includes pension plans, IRAs, 401k plans, and more.
For a divorcing couple that has any account related to the stock market, they are likely very concerned about the major losses that have occurred over the last few weeks. For accounts that have been building for decades, losses of hundreds of thousands of dollars are not uncommon. This significantly changes the valuation of assets in a divorce.
Let Us Help You Through This
If you are considering going through a divorce, or already in the midst of separating from your spouse, Covid-19 may be on your mind. At The Law Office of Gustavo E. Frances, our knowledgeable and experienced attorneys understand the major stock market swings can affect assets during a divorce. Covid-19 could end up making an already difficult divorce process even more complicated. When you need a Fort Lauderdale divorce attorney, you can contact us by clicking here or calling 954-533-2756 for a free consultation.