Many older couples are choosing to end their marriages right before or during their retirement years. There are a number of reasons for this, but some believe many who do this just want to live out their retirement years without being tied down in unhappy marriages. Whatever the reason, Ohio residents who file for divorce later in life may want an experienced family law attorney at their sides to help them through the process.
For the last several decades, the United States has seen gray divorce rates slowly rising. With this increase in later-in-life divorces have come concerns over the splitting of complex assets — such as retirement accounts. Few people plan for divorce right before or during retirement. The thought of having to divide retirement accounts can be devastating to some.
Splitting retirement accounts may not be necessary if a couple has other assets that can be given to one party in order to create a fair property division settlement. For example, if one spouse would rather keep the home and furnishings as opposed to receiving cash from retirement savings, that can save the other party from taking an early distribution. It all depends on what a couple has and what each party is willing to give.
If dipping into retirement accounts does prove necessary, there is a certain way in which one must go about it. A Qualified Domestic Relations Order is needed to prevent any tax penalties for taking an early distribution. For the receiving party to avoid having to pay taxes on the money, he or she would need to roll it into his or her own retirement account. One’s legal counsel can provide further information on how all of this works.
Gray divorce and the complex assets involved in such divorce cases can be challenging to navigate. Ohio residents who find themselves in this position do not have to go through it all alone. A family law attorney can walk one through the divorce process and help one fight for a fair division of assets.