Protecting Finances Possible During Divorce
On behalf of of Schaffner Family Law posted in divorce on Thursday, March 30, 2017.
The dissolution of a marriage in the state of Kentucky can certainly bring about emotional distress, but it can also bring some financial pains. This is particularly the case for those who are not used to making financial decisions independently. However, taking things one step at a time during the process of divorce can help to make the transition more palatable.
One of the most important considerations during the divorce process is what will happen to retirement savings. The court may provide what is called a QDRO, or qualified domestic relations order, which determines how these savings are divided. That may, however, have some financial consequences; for instance, it might be beneficial to roll money received from a future ex’s 401(k) into an IRA account to avoid paying any taxes on this money.
It is also essential to update beneficiary designations on retirement accounts. Life insurance policy designations also must be updated following divorce. This is necessary to ensure that the intended beneficiaries receive the money in one’s accounts years down the road.
Achieving a settlement at the negotiation table may be possible for couples who are willing to work toward finding common ground rather than going to trial. However, in some cases, traditional divorce litigation is inevitable, which means a judge will have to make essential financial decisions for the couple. Either way, a Kentucky attorney will work to make sure that one’s best interests are protected during the process of diving assets and dealing with matters such as spousal support.
Source: ajc.com, “Victim of ‘Divorce Season’? Protect Your Finances”, Kevin Voigt, March 29, 2017