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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Divorce is never easy, even when it's a mutually agreed-upon decision. Even in the simplest divorce, there are strong emotions and asset division issues to contend with. In high asset divorces, there are often retirement plans, real estate, business assets, expensive vehicles and other complex issues to deal with. No matter what you own, no two divorces are the same, which is why a personalized approach is key.
When Maryland couples divorce, there are many issues regarding property division. This is especially true in the case of a wealthy dissolution. There are often multiple homes, stocks, bonds, retirement plans and much more to split up. There are often many disputes about asset division because of the tax implications involves - something that most couples don't think about. Find out how a high asset divorce can affect your tax liability.
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.
When most Maryland residents think about complex asset division in a divorce, they probably envision discussions over how to sell their most valuable asset - the family home - and divide the proceeds. However, in a high asset divorce, the stakes can be much more significant than that from a financial standpoint.
Many people probably have a view of divorce primarily as a way to get a clean break from an unhealthy relationship and move on with life. While this may be true in many cases, the unfortunate reality is that a divorce involves much more than simply parting ways with a spouse, especially if it is a high asset divorce.
Some of our Maryland readers may find themselves asking at some point, "Is there ever a good time for a divorce?" Well, for some people, particularly those who are anticipating a high asset divorce, the answer might just be "Yes - next year."