Divorce can be a possibility for people of every age. For older Colorado couples, divvying up assets such as retirement accounts can render the process that much more difficult. Here at Ciancio Ciancio Brown, P.C., we can provide those seeking a dissolution of their marriages with the information they need to better navigate asset division and other complex divorce matters.
CNBC details some of the issues that must be considered when dividing a retirement account during divorce proceedings. Understanding the total value offered by a specific account is an important matter. Accounts are taxed differently depending on the type in question, which can play a role in the final amount. For instance, some accounts require taxes to paid as contributions are made, while others are only taxed upon payout.
Ownership of accounts is another concern for many couples. In this case, it’s a good idea to update name designations on financial accounts after divorce. Failure to do so could end in assets being distributed to the wrong person, as well as lengthy court battles. Couples should also be aware that in a majority of divorce cases money accrued during the course of the marriage will most like be split evenly.
Some spouses may desire to retain the family home in exchange for their share of financial accounts. This is not recommended, as in many instances retirement accounts are not accurately valued and may end up providing more funding than initially expected. This decision can also actually increase costs down the line since homes will most likely require an influx of cash for maintenance and other expenses. If you have questions about asset division during divorce, please visit our website.