As life expectancies continue to extend into the 80s and 90s, divorce for people over 50 has become more common. Yet, many do not realize that a divorce coinciding with retirement can have a major impact on the financial future of both spouses. Retirement benefits and the laws that regulate them must be carefully considered in these divorces.
If you are facing divorce near retirement in Frisco, a skilled high-asset divorce attorney could help you navigate the complexities of dividing retirement assets to find the most amicable solution possible. The family law attorneys at Towson Law Firm have substantial experience helping older adults navigate the divorce process. Our lawyers could help you preserve your retirement benefits and split them equitably for a secure future.
Couples acquire significant assets during marriage, including retirement accounts. These joint accounts require proper evaluation and planning to value benefits and split equitably. Retirement and financial planning often revolve around the legal status of marriage, and divorcing at a later age usually requires dramatic changes to an existing financial plan for retirement.
While both spouses may have worked throughout a marriage, divorce can substantially impact entitlement to Social Security benefits. Couples married for ten years or more may find that one spouse is eligible for a portion of their ex-spouse’s Social Security benefits upon retirement age. Understanding the rules surrounding Social Security is critical to ensuring both spouses get the benefits they are entitled to.
Married couples in Frisco may have several different kinds of retirement accounts that must be divided during divorce, including 401(k), Roth IRA, pensions, and stock option plans. Splitting these accounts often requires a Qualified Domestic Relations Order (QDRO) to avoid early withdrawal penalties and maintain tax-deferred status. Carrying out these transactions requires specific legal steps to avoid costly mistakes.
Although older couples often divorce amicably, there is still an undeniable financial toll on both individuals. Most couples have made arrangements for retirement with one home in mind instead of two. Without careful planning, divorce can disrupt existing retirement plans, requiring one or both spouses to work longer than expected. Post-divorce retirement planning requires careful consideration of these strategies and how to maximize retirement assets.
For most Frisco couples, making sound financial decisions for retirement following divorce requires professional legal advice and a reassessment of retirement goals. An experienced family law team is uniquely positioned to guide couples through the challenges of retirement asset division. Our attorneys typically work closely with financial advisers, CPAs, and tax experts to identify appropriate strategies for maximizing a couple’s assets and distributing them fairly.
Contemplating a divorce near retirement in Frisco can feel overwhelming. A skilled attorney could help you make financially sound decisions to ensure a comfortable and secure future. At Towson Law Firm, we help couples navigate complex tax issues and accurately evaluate assets to develop a fair division of retirement benefits and other assets in a divorce. Our compassionate attorneys could help you plan for the financial realities of retirement after divorce. Contact us today to learn more.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.
