Massachusetts readers know that the end of a marriage signals many changes for the two spouses, including financial adjustments and division of marital property. Any issue that involves the division of money or valuable assets can be complicated, and the appropriate distribution of retirement assets is no exception. Without care and the help of an experienced family law attorney, a high asset divorce has the power to derail a person's retirement.
Retirement assets that were accumulated over the course of the marriage are considered marital property, all of which must be accounted for and divided upon divorce. This includes investment portfolios, IRA accounts, 401(k)s and more. When two people who have been married for decades decide to divorce in the years approaching retirement, this could involve a significant amount of money that had been saved particularly for that purpose.
The divorce rate among older couples is booming, leading to the phrase "gray divorce." A gray divorce will almost certainly involve retirement savings, and it could impact a person's desired retirement date and aspiration for his or her retirement years. Divorce will require a financial adjustment, but it is important not to make rash decisions or accept a settlement without careful consideration.
There are many important considerations that must be made when going through a high asset divorce, especially if one or both parties are approaching retirement age. A Massachusetts lawyer can help a person make decisions that are beneficial for the future, not simply based on temporary emotions or needs. With guidance, a person can secure a divorce settlement that provides the ability to have a strong financial future.
Source: The Washington Post, "Divorcing late in life? Don't let it destroy your retirement.", Martha M. Hamilton, Dec. 2, 2016