When people think about divorce, they often get a picture in their heads of a relatively young couple, likely with minor children, who is just ready to call it quits. They don’t really think of divorce affecting older couples who have been together for several decades, or longer, or those who are on their second or subsequent marriages. The truth is gray divorce is on the rise and has been since the 1990s. No matter when one chooses to dissolve his or her marriage, a Michigan-based divorce law attorney can help one fight for a fair and balanced settlement.
Divorce, no matter when it happens, can be a complicated process. For older adults who end their marriages right before or during retirement years, there are likely to be deep financial concerns. How will one survive? How does one go about splitting retirement accounts?
When it comes to complex assets such as retirement accounts, there is a certain way in which these accounts must be accessed and divided. A Qualified Domestic Relations Order is needed to help avoid any tax penalties associated with an early distribution request for a 401(k) account. Money must be rolled into another retirement account or the receiving party may have to pay taxes on the distribution as it will count as income. Of course, depending on the type of assets a couple has, it may be possible to leave retirement accounts alone and instead grant one party a greater percentage of other assets that are of equal value to the amount they would get out of a retirement fund.
When it comes to divorce law and asset division, there is more than one way to go about it so that it allows both parties to walk away with their fair share of the marital assets ready to take on their retirement years. Michigan residents going through a gray divorce can turn to legal counsel for guidance on the best way to split complex assets. While achieving a fair division of property to take time, one’s legal counsel will work diligently to see that it is done.