Divorce is a difficult process, emotionally and financially, but for older couples even more so. Knowing what to expect can help couples prepare and deal with some of the negative consequences. This article describes some real life experiences and provides valuable lessons.
Money issues are often the source of marital problems that can lead a couple to divorce. By understanding one another’s expectations regarding money and personal assets, i.e. inherited or gifted assets, a newly married couple will start their marriage with peace of mind and open communication. For that reason, a couple should consider a prenuptial agreement before walking down the aisle. This article provides more information on the process and benefits of using prenuptial agreements.
Spring is here but so is tax season. If you are considering divorce or have started the process, historical tax returns have important information regarding income and assets. It is important to understand some of the underlying schedules of the federal tax return which may require a conference with your accountant. If you have doubts about the numbers shown on this year’s joint return, it may be better to file separately. Read this article for more information.
Splitting retirement accounts pursuant to a divorce requires a separate agreement, a qualified domestic relations order (QDRO). This agreement may cover a 401(k), 403(b) or a pension plan, must meet specific requirements and must be presented to the retirement plan administrator. Although a QDRO is not needed to split IRA assets, the divorcing parties should consider the timing of division to ensure that it does not produce unwanted tax effects. Additional information regarding QDROs can be found in this article.