As the year comes to a close, many individuals are reviewing their financial health, setting goals for the new year, and tying up loose ends. If you’re in the middle of a divorce, or expect to be soon, year-end financial planning takes on added urgency. It’s the perfect time to take stock of your assets, understand your legal rights, and begin building a plan for protecting what matters most.
At McMurdie Law & Mediation, we guide clients through these sensitive transitions every day, helping them prepare for a financially stable future. Whether you’re managing retirement accounts, investments, or jointly owned property, this is the time to be proactive about asset protection during divorce.
Why Year-End is the Right Time to Focus on Finances
For most people, the end of the calendar year is a natural checkpoint. Financial institutions issue year-end statements, benefits elections may change, and tax planning becomes top of mind. For divorcing couples, it’s also a crucial opportunity to:
- Clarify what marital property will be divided
- Identify personal vs. community assets
- Adjust investment strategies or contributions
- Prepare documentation for upcoming legal or tax deadlines
Arizona is a community property state, so all assets and debts acquired during the marriage are typically divided equally in divorce. However, that division isn’t always simple, and a well-timed review of your financial position can make a major difference in your outcome.
Protecting Retirement Accounts During Divorce
One of the most valuable marital assets is often a retirement plan. Whether you have a 401(k), IRA, military retirement, or pension plan, it’s important to understand that:
- Retirement accounts earned during the marriage are subject to division
- Division typically requires a special court order known as a Qualified Domestic Relations Order (QDRO)
- Any contributions made after separation may be treated differently depending on timing and local court rulings
Protecting your portion of a retirement account and avoiding tax penalties requires precision. At McMurdie Law & Mediation, we work with financial professionals and QDRO specialists to ensure that retirement assets are handled properly and in your long-term best interest.
Review Your Investment Portfolio and Property Titles
As part of your divorce process, you’ll need to create a full inventory of assets. This includes:
- Checking current balances of brokerage and investment accounts
- Reviewing how real estate or jointly owned property is titled
- Looking at stock options, RSUs, and any business holdings
- Evaluating the future tax impact of dividing various assets
Not all assets are equal in divorce. For example, two accounts with the same balance might have drastically different tax consequences. An end-of-year review with your attorney and financial advisor can help you make smarter decisions about what to negotiate for and how to structure agreements.
Update Your Estate Plan and Beneficiaries
Another important step in protecting your assets is ensuring your beneficiaries, powers of attorney, and healthcare proxies reflect your post-divorce intentions. Many people forget to update:
- Life insurance policies
- Retirement plan beneficiaries
- Wills and trusts
- Titles to vehicles or property
While some of these updates can be made now, others must wait until the divorce is finalized. However, knowing what needs to be updated, and when, is part of a solid end-of-year strategy.
Collaborate Where You Can
At McMurdie Law & Mediation, we help clients protect their assets through both traditional divorce representation and collaborative divorce or mediation. These methods allow couples to work together respectfully, often preserving more of the marital estate and reducing legal expenses. When protecting your financial future is a top priority, a cooperative approach can lead to better results for both sides.
Let Us Help You Start the New Year with Clarity and Confidence
Divorce is as much a financial process as it is a legal and emotional one. The choices you make now, especially around asset protection, retirement accounts, and end-of-year financial planning, can shape your security for years to come.
Contact McMurdie Law & Mediation today to schedule a consultation and discuss how we can help protect your financial future during divorce. Whether you’re just starting the process or finalizing your agreement, we’re here to guide you every step of the way.