Divorce After 50 Can Be Costly
As we age, we often think of spending time with our spouse travelling and enjoying the time together that we didn’t have in the younger years. Unfortunately, uninterrupted time together and a lack of responsibilities sometimes means facing the fact that you no longer want to be with the person who you are married to. A divorce later in life may not involve child custody and support, but it often involves dividing high-value assets, retirements funds and savings. Our team of New York City divorce attorneys understands the devastation that can come with a divorce when you are in your older years and we can help you with the transition while protecting your assets.
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Retirement & Divorce
The effects of divorce on retirement plans, savings and taxes can be devastating to your overall life picture and how you’ll spend your golden years. Here are a few things to consider and plan for as you face divorce:
Retirement Savings or 401ks: New York law divides savings and assets in the way that is most fair, which may or may not be 50/50. The amount awarded to your spouse will be determined by how long you were married and how much of it was earned during the marriage. Divorce is a qualifying event for transferring money into a like account, so you may not have to worry about the intricacies of cashing out or writing a check. Your attorney can help you determine the safest and most fair path.
Building a New Plan: Because of the change in marital status and the amount in your retirement account, you may have to change the way you are allocating your income and increase your deposit to make up for what you have lost. Additionally, you may experience a retirement delay because you can no longer rely on the amount that was in your account. Adjustments made while you are still working can greatly benefit you once you stop.
Paying Taxes: If you are splitting a Roth IRA, the safest bet to not have to pay taxes on a transfer is to set up a new account in the name of the spouse receiving the settlement and to transfer the money after the divorce is complete. The complexities of your different accounts and the divisions are best handled by a qualified attorney from our team.
Don’t Risk Your Future, Call Us: (917) 809-7669
Divorce is not easy, no matter how wise and mature two people are. Don’t risk making it harder on yourself, mentally and financially, by trying to file and process it alone. As we age, our fiscal worth may be much greater than it was when we got married. Let our New York City divorce attorneys help you make sure that assets and retirement savings are divided fairly and with your best interest in mind. We understand the hit that retirement plans take during a divorce and we want to help you preserve what you can.
Contact our team for legal counsel at (917) 809-7669.