Later life divorces come with unique challenges when it comes to asset division. Pursuing a divorce after many years of marriage is a daunting task, especially when concerns over your future finances might make you even more apprehensive. One of the common complications of asset division during such divorces involves retirement accounts and pension plans.
Considering the factors that go into asset division
New York is an equitable division state for divorces, which means that judges attempt to find a fair distribution of assets amongst spouses during a divorce. Here are some factors a judge will consider when dividing marital property in New York:
- What did each spouse contribute to each listed account?
- Is there a prenuptial agreement in place?
- How long was the marriage, and what value accrued during that time?
- What is the earning potentials of each spouse?
What accounts qualify for division?
Typically, the accrued value of a retirement account before the marriage is considered separate property, but this is not always the case. Here are some accounts considered in the division of marital property:
- IRAs/Roth IRAs
- 401(k)s
- Pension plans/Pensions from the civil service, government positions and the military
- Health savings accounts (HSAs)
Planning for your new life
For many, a divorce can result in a catastrophic financial loss, creating hardship for those people nearing retirement age. If you are considering pursuing a divorce, you need to find an attorney experienced in divorce cases and later-life divorces.
