If you’re a baby boomer getting a divorce, you might have moved beyond the stage at which you need to fight it out with your soon-to-be ex over child custody. There are plenty of other issues that can make divorce negotiations just as heated. Among those, is deciding who is going to gain access to retirement accounts.
We live in an era in which divorce is on the rise among baby boomers, or adults over the age of 50. In fact, according to the National Center of Family & Marriage Research, divorce rates among those of this population have more than doubled the 1990 rate. And for the next generation that came before them, those 65 and older, divorce rates have more than tripled.
The fact that divorce rates are increasing right as a population is set to start drawing retirement is a concerning trend according to the American Academy of Matrimonial Lawyers. Most alarming perhaps is that pensions or access to retirement accounts comes in only second to alimony in terms of what divorcing couples of this age bracket are fighting over in divorce court.
In light of this, you might wonder who can claim ownership over retirement accounts. Unfortunately, for those living in most communal property states, retirement accounts and pensions are seen as an asset to be split right down the middle. This can be particularly scary for someone hoping to have enough money to live off of in the future.
If you happen to have a retirement account that is being laid claim to in a divorce, the best hope you have is that your ex will go with the sentimental choice, the home, over the retirement account. One of the great aspects of retirement accounts is that have a potential to grow making its value difficult to quantify.
Your spouse choosing the home is a particularly poor choice to make for them, especially given that they may not be prepared for the upkeep associated with it. However, that choice over your retirement account is a particularly good option for you.
Divorces involving investments or other high level assets can be contentious. However, those represented by a skilled Fort Myers, Florida, divorce attorney have the potential to protect their assets and their livelihood into the future.
Source: cnbc.com, “Memo to divorcing boomers: Watch your assets,” Jessica Dickler, accessed May 05, 2017
