Property division in gray divorce can affect standard of living
The concept of marriage is changing. More people choose a partnership path that is based on personal fulfillment, and older couples who once may have been more reluctant to divorce are embracing new norms, paving the way for a surge in what the experts call “gray divorce.” During a gray divorce, older individuals face many of the same challenges as younger people, but property division can be trickier for these couples. In Kentucky, many older couples have retirement accounts and their home as assets, and dividing these types of assets may take more negotiation and forethought.
When a person divides a retirement account, there are tax concerns and fees. If a person splits a 401(k) or an IRA account and does not immediately roll it over into another retirement account, the sum is subject to taxation. Brokerage accounts have fees associated with withdrawal. What has been considered an adequate nest egg can be quickly diminished if the fees and taxes are not taken into account.
A home can be a place of strong emotional ties. A person may be reluctant to leave a home, but soon find that the value of the home has dropped in an uncertain real estate market. If an older person chooses to leave the home and start over, he or she may be surprised at how the cost of housing has increased.
Property division can be costly. Many individuals in Kentucky prefer to review their financial picture carefully at the time of divorce. Some find that a consultation with a lawyer can be helpful during the divorce process.
Source: kiplinger.com, “The True Cost of Gray Divorce“, Scott Hanson, Accessed on Oct. 1, 2017