According to the National Center for Family and Marriage Research, boomers (people aged 50 and above) divorced at a rate of 10 percent in 1990. Today, the figure has risen to 25 percent. Divorcing boomers in Montgomery, Tennessee, should be aware that their decision to divorce may affect their financial well-being. Property division in divorce often involves retirement accounts, which is one of the most important assets of individuals on the brink of their golden years.
Division of assets is not easy due to the fact that it involves property obtained during the marriage. Assets can include business assets, retirement funds and bank accounts. Boomers may have accrued a wide array of properties and assets over the duration of their marriage, and equitable division might be difficult to achieve in a divorce settlement. Elderly divorcing spouses should be cautious during property division. They should choose carefully the properties they want to keep or give to the other party.
Getting a correct valuation of these assets is imperative in these cases, especially if both parties want to split their assets exactly in half. However, divorcing boomers may bargain on choosing items with lesser value in exchange for more expensive assets if they have an emotional attachment to a particular item. Property division is decided on a case-to-case basis and all arrangements depend on an agreement between both parties.
Boomers must also consider the tax implications of their division of assets. If there has been a lot of property obtained during the marriage, both parties should be aware of the tax laws and regulations that can affect their financial footing once the divorce is finalized.
For example, divorcing boomers in Tennessee may have to divide their 401(k) retirement account. The other party may be entitled to a portion of it, but liquidating those proceeds before reaching the age of 60 may result in tax penalties.
Tennessee boomers facing property division in a divorce may want to explore their legal options before deciding on how to settle their assets.
Source: Nypost.com, “Over-50 divorce has boomer$ reeling,” Gregory Bresiger, Feb. 16, 2013
