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Goldman Law Offices

High Asset Divorce Archives

Divorce after the age of 50 and the financial considerations

Getting a divorce can be devastating at any age. Divorces between adults over the age of 50 have increased greatly over the last several decades in Pennsylvania. Most people at this age have planned for retirement for many years and wonder how they will be able to afford it after a divorce. There are several ways to prevent a divorce from affecting retirement.

A closer look at alimony and the new tax reforms

A recent tax reform has drastically altered how alimony is figured into one's taxes, and these major overhauls are going to impact divorcees throughout Pennsylvania and the rest of the country. Many couples are now racing to complete their divorces before the new tax laws officially go on the books. Those who wait to get divorced may end up losing benefits and owe more money to the IRS at the end of the year.

Retirement funds can be a major factor in divorce

For many exes in Pennsylvania, divorce can lead to major complications in retirement planning. Because retirement funds are often among the largest assets held by a married couple, the effect of splitting them in a divorce settlement can be significant. Exes may need to escalate their savings plans in order to restore their funds, especially as the cost of retirement continues to rise. A divorce can have significant, long-term effects on financial planning even beyond the immediate results of property division.

Why it is important to change beneficiaries after divorce

When couples in Pennsylvania make the decision to divorce, there can be serious, immediate financial concerns that follow. However, the financial impacts of divorce are not only those that occur immediately after the end of a marriage. It can be particularly important to handle important matters relating to retirement funds, life insurance policies and other accounts with beneficiaries.

Drawing on an ex-spouse's Social Security payments

When people in Pennsylvania get a divorce after 10 or more years of marriage, a lower-earning spouse may be eligible to draw Social Security benefits based on the earnings of the higher-earning spouse. A former spouse who receives these benefits will lose them upon remarriage. In some cases, if that marriage ends in death or divorce, the person might be able to resume receiving the benefits.

The financial impact of divorce over 50

In most states around the country, including Pennsylvania, divorce rates are decreasing with every age group except those over 50. In fact, one in four couples over 50 will go through what many call a gray divorce, and this age group has experienced a staggering 50 percent increase in divorce rates over the last 20 years. Often, these individuals are retired and have their own unique set of financial consequences of divorce to deal with.

Dividing retirement accounts

Pennsylvania couples who are getting divorced should be aware that making wrong decisions about how to divide retirement assets can be very costly in the long run. Legal and accounting professionals spend a lot of time rectifying the mistakes made by divorcing couples who mishandle their retirement accounts. It is important a legal agreement is in place to avoid having to pay a high tax bill or ending up with no retirement funds at all.

Division of property and hiding assets in divorce

A divorce in Pennsylvania may become more contentious and complicated if one spouse believes the other is hiding assets. This was the case with a 61-year-old woman who was divorcing her spouse of 25 years. The woman had been the main support for a decade, but her husband wanted both the home and half of her 401(k) in the divorce. The woman also said that he was sharing financial information with her sister but not with her and her attorney.

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Goldman Law Offices

90 E. State Street
Doylestown, PA 18901

Phone: 215-348-2605
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