Marriage changes everything for two people, and divorce often does the same. Assets that were joined together have to be separated between individuals, and financial plans are irrevocably altered for both people. Divorce when people are young often gives them more of a chance to rebuild lives on their own. This changes as people age.
How may divorce affect retirement?
Retirement accounts originally meant to support a couple generally have to be divided or bartered for something that a spouse considered to be of equivalent value. In many cases, people have to cash out their assets to divide them, which sets retirement plans back and may push the age of retirement further into the future.
What about children?
Inheritances may be affected, but there are often no greater victims of divorce that minor children. Custody or support issues may restrict where people can live. For example, there are fewer differences if both parents remained in the same part of New York, but one parent thinking of moving to another area or jurisdiction may lead to changes in custody arrangements.
How can people protect their assets in divorce?
A domestic relations order (DRO) may help people legally divide assets and save on tax penalties while avoiding other complications that can cost value to both spouses. It is often advisable that people seek to protect their assets with legal help during divorce. An attorney may be able to find new ways to reduce the tax burden on dividing assets and making a legal case for those who are entitled to specific accounts or properties.