It is heart wrenching to be a spectator of a divorce. Many of us have witnessed one or more of our girlfriends go through the Big D (AKA hell) or, even worse, we’ve experienced it ourselves. No one wants to see a marriage dissolve – the parents, kids or the friends of the couple intertwined in the impending break-up. However, the divorce over 50 trend among couples is becoming a startling statistic. In the last 20 years, the divorce rate among baby boomer couples has doubled. Read More
It is very common in a marriage for one spouse to earn most, if not all, of the family’s income – especially if the couple has children. Generally, this means the spouse who earns more will be at a huge advantage when it comes to plans that will provide income in retirement. If the couple is facing divorce, their settlement will typically divide those pension plans, 401k’s, or IRAs. What many couples – and sadly, some divorce attorneys – don’t understand is the settlement agreement isn’t enough. You need a QDRO, or Qualified Domestic Relations Order. Read More
One of the reasons people place retirement funds into qualified retirement plans such as an IRA account is that the funds are set aside pre tax. When you’re going through a divorce, these retirement assets will need to be divided, and you’ll want to make sure that a QDRO is included in the agreement to handle these previously untaxed assets. If you divide a retirement account such as an IRA without a qualified domestic relations order, it can be subject now to taxes and even penalties. Read More
Most divorce lawyers wish their clients had a better handle on what a fair and equitable settlement would be at the time of divorce. Very often, emotions take over and the client has a very difficult time separating emotions from financial reality.
If you are facing divorce, there are several things you can do to help your lawyer better represent your best interests. These steps require time and effort, but you can save a substantial amount of money in discovery fees by proactively gathering the financial ammunition that will be used to negotiate your settlement. Read More
Since our post, “QDRO – Dividing up Retirement Accounts at Divorce“, we have received numerous requests for more information regarding QDROs. If you or someone you know is facing a divorce, we hope that the following information and resource links prove helpful in explaining QDROs in more detail. Dividing up retirement assets earned during marriage is too important an issue to not understand thoroughly. Read More
During years of marriage, many women have focused on raising a family…instead of focusing on building personal wealth.
If you’ve spent your life taking care of family while your spouse earned all or the majority of the income, here’s something you need to know – QDRO. A QDRO is a “Qualified Domestic Relations Order,” which provides a legal mechanism for dividing the retirement benefits of private pension and/or 401K plans earned by your spouse during the years of your marriage.* Read More