On behalf of Kelly Law Office, LLC posted in high-asset divorce on Wednesday, April 24, 2019.
Ohio residents going through a divorce are dealing with a number of challenges that affect them emotionally. Deciding what to do with a cherished family home or deciding how issues pertaining to child custody are addressed can take a toll on an individual. The danger is that a person will become so focused on what is going on in their divorce now that they fail to think about how their decisions will have a long-term effect. This is especially true when it comes to financial decisions made during divorce about retirement.
When negotiating financial decisions during divorce, it is natural for a sense of despair to set in and cause a person to feel overwhelmed. This is why it’s important to think about what life will be like on the other side of the divorce and see the proverbial light at the end of the tunnel. The emotions a person experiences are understandable, but it is dangerous to let those emotions run wild to the point where they lead to making poor financial decisions.
For example, individuals may have to think about how they are going to handle their IRAs. If they do not take the time to thoroughly investigate the matter, they may think that since their name is the only one that appears on the IRA, the money earned is off-limits to their soon-to-be ex-spouse. This is not true. The reality is that anything acquired during marriage is considered marital property and may be subject to division. The reason why it is important know this is because if a person accesses the money in the IRA before they are 59.5 years old, they may face a penalty. This may influence an individual’s decisions about the assets they are going to retain post-divorce.
A family law attorney may be able to help their client by advising them on shared accounts, asset valuation, property division laws and other practical issues that can come up during the divorce. They may represent their client during divorce hearings and work with their client in creating legally binding documents.