Some Maryland residents spend their entire career - several decades or longer - saving for retirement. By the time they retire, they may have amassed a large sum of money - perhaps millions of dollars. But with the recent trend toward divorce late in life, this money may not be totally secure. Retirement plans such as pensions, stocks and 401(k)s are considered assets in a divorce, so these accounts are subject to division. This means that the other spouse may be able to claim his or her fair share should the marriage end. Read on to find out more about what happens to retirement plans in a high asset divorce.
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When Maryland couples divorce, they may look to the divorce decree to review negotiations on asset division, child support, child custody and other common divorce issues. However, many lawyers now go a step further and create separation agreements as well. A separation agreement is basically the summary of all the items that the husband and wife have discussed and negotiated on. Our law firm understands the importance of a detailed agreement, and how it is generally a must for something as complex as a high asset divorce.
Maryland couples who have been through a divorce can attest that the process can be very expensive. In order to save as much money as possible, some couples may try to settle everything without help from a lawyer.
No matter how long a Maryland couple has been married, a divorce can still be emotionally draining. Divorces, however, are often easier when the couple has only been married a year or two. After this short amount of time, most couples do not accumulate much in terms of assets. They probably do not have kids together or even a house. However, when couples have been married for decades and suddenly divorce, things become more complicated. A lot can happen in that length of time. Couples may have started businesses, or accumulated collectibles and other assets of value. There are many types of property potentially involved in a high asset divorce.
In the past, most couples divorced well before retirement age, so there was rarely an issue about splitting up Social Security benefits. However, times have changed and more and more couples in Maryland and other parts of the country are divorcing in their 50s, 60s and even their 70s. Splitting up so late in life often causes one to rethink his or her retirement plans because their Social Security benefits - often their largest asset - often must be split with the ex-spouse. However, there are ways to maximize one's earnings without a huge dispute between the divorcing spouses.
For Maryland couples, a divorce can be financially devastating at any age. However, this is especially true for baby boomers who have retired and no longer have a job to increase their income. Women often are hit the hardest because the men typically control the finances and, after decades of marriage, things can get tricky when trying to split property due to all the assets accumulated. Fortunately, there are ways to survive after a high asset divorce during retirement.
From time to time the divorce of a high-profile couple will consume the news media, for a variety of reasons. When Tom Cruise and Katie Holmes divorced, much of the news coverage was focused on what would happen with the custody situation for their young daughter, Suri. When Kim Kardashian and Kris Humphries divorced the media was obsessed with determining whether the whole marriage was a sham to begin with. Now, there is another couple in the headlines because they have filed for divorce, but this time the news is focused on much different topics: one of the parties himself is a member of the news media elite, and it is likely to be a high asset divorce - perhaps as high asset as it gets.