Saturday, February 27, 2021
It is important to understand the implications of all money-related decisions being made, especially the tax implications and retirement accounts when splitting the assets during divorce.
If you happen to be in the midst of splitting from your spouse or are considering it, be aware that aside from the price tag of divorce — the median is $7,500, per legal website Nolo — there are other parts of the process that can unexpectedly end up costing one spouse.
Some assets appear to have equal values. Yet once you factor in taxes, they may not look so identical. If you have a 401(k) or other workplace retirement account and your soon-to-be-ex is entitled to a piece, it is better to have an attorney drafting a qualified domestic relations order, or QDRO.
Sometimes, divorcing couples sell the family home and divide the proceeds as dictated in their agreement. Other times, one of the spouses remains in the house.
Read more here.