One of the most complex and stressful parts of a marital breakup is dividing assets and property. Finances are often a primary concern for spouses in Kansas who decide to go their separate ways, especially in a high asset divorce. Obviously, divorce will affect nearly every aspect of a person’s life, and retirement savings are no exception. Here’s how a high-asset divorce could impact retirement plans.
Unless a couple had a prenuptial or postnuptial agreement, pensions and retirement accounts will be considered marital property. This means these accounts will be subject to division between spouses in the event of a divorce. Unfortunately, this may also mean that retirement plans could be delayed, as it may take time to rebuild retirement savings.
Adjust savings goals
The future plans will ultimately change now that the marriage is over. Obviously, this will also have an effect on expenses. Living expenses will most likely increase now that spouses will be living in separate households. Those who go through this experience will need to adjust their savings goals to account for the lifestyle changes that come with divorce. Take time to assess the circumstances and draft a plan.
When dividing retirement accounts, spouses could incur taxes and penalties for accessing these accounts before retirement age. A domestic relations order may help to avoid these penalties. Consult with an attorney for help with creating and enforcing the appropriate court order. Any person in Kansas who needs advice or help with a high-asset divorce could greatly benefit by contacting a seasoned and knowledgeable legal representative.