The beginning of a new year is a common time for people to get divorced. Recently, an increasing number of these individuals have been older Americans — those in the range of 55 years or older. Some tips may help older individuals in Bronxville or elsewhere in New York cope with the financial effects of divorce proceedings.
One important step is to take into consideration the tax implications of the division of certain assets during divorce. A common transaction during divorce is the transfer of retirement funds between the two parties. In doing so, it is typically necessary to have a Qualified Domestic Relations Order prepared, as such an order will protect the couple from having to pay income taxes on the transfer.
Understanding the tax consequences of certain asset splits is important because those who get divorced later in life have fewer working years left to try to make up for any divorce-related financial losses. Even a seemingly significant nest egg in the form of multiple retirement plans and substantial savings can quickly dwindle as a result of asset division. If a cautious analysis is not done, critical provisions as well as the value of certain retirement plans might end up being overlooked, jeopardizing one’s financial future.
A New York divorce is generally not a pleasant experience for either older or younger couples. This is true even in the most amicable of marital split-ups. A family law attorney in the Bronxville area can assist in navigating the proceedings to achieve a fair and balanced settlement.
Source: kare11.com, “‘Gray Divorces’ trending upward“, Adrienne Broaddus, Jan. 30, 2017