The Koblin Family Law Center

Concerns for retirement-age divorcees

California couples may be surprised to learn that the rate of divorce for individuals between the age of 50 and 64 doubled from 1990 to 2014. Perhaps even more alarming is that the divorce rate tripled for people older than 65 during the same time period. Many of these older divorcees are facing challenges regarding their retirements.

Despite who a retirement account belongs to, each spouse could be entitled to half the account if it was acquired during a marriage. One should make sure to change the beneficiaries for accounts if a former spouse is listed.

When dividing retirement accounts, remember to think about the associated tax costs. One pays taxes on a Roth IRA or Roth 401(k) when contributing to an account while taxes apply when withdrawing money from an IRA, pension or 401(k). Couples must remember to split accounts based on the after-tax value. If each spouse is in a separate tax bracket, the higher wage earner would need more to equal the lower earner's share after taxes.

People sometimes compromise and give up some assets in exchange for others. However, individuals should be careful when trading a retirement plan. For example, giving up half a retirement fund for a home is risky as real estate is harder to maintain and could lose value while retirement funds are more likely to increase in value.

Ending a marriage brings up financial concerns for everyone. However, divorce can be more worrisome when one is also near retirement age. While adults over 50 are less likely to have child custody issues, alimony could still be a large concern along with retirement accounts.

No Comments

Leave a comment
Comment Information

What Our Clients
Say About Us

View More Testimonials
  • “Kennedy helped me with my legal issue and was just amazing throughout the whole process. He was always available to explain everything to me and really put my mind at ease. I am not an easy person to work with and Kennedy really helped me calm down and guided me through my issue. I could not have obtained the result I did without Kennedy's expert assistance. His command of the law is truly impressive. —” Jeff
  • "Even though Kennedy looks like a 17 year old, he is impressive in his knowledge of law, his intuition of the case and his strategies for settlement. He seems equally capable and comfortable in the courtroom or at the settlement table. He helped me weigh the facts, consider the emotions and evaluate the cost of my case. He leans toward the collaborative style of divorce and I believe wants the best for his clients. In partnership with Cristin Lowe, they make an impressive team. — "William
  • “Kennedy also helped me relax as much as possible. The emotional cost in such cases is extremely high. Kennedy would help manage this and understood the struggle I faced. He acted with great professionalism and with compassion to help me work through the case...” Robert

We Can Resolve Your Legal Issue Arrange Your Consultation Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response
5700 Stoneridge Mall Road Suite 230 Pleasanton, CA 94588

The Koblin Family Law Center
5700 Stoneridge Mall Road, Suite 230
Pleasanton, CA 94588

Phone: 925-298-2961
Fax: 925-203-9797
Pleasanton Law Office Map