Going through a divorce as an older Washington resident may be more challenging than if that same resident had gotten a divorce at a younger age. This is because, even if the estranged couple is amicable, how the financial assets are divided up can have a major impact on their retirement.
When couples get divorced after decades of working, one or both former partners may have 401(k)s, IRAs and pensions that will need to be divided up. However, there may be specific rules when it comes to dividing up certain retirement plans. These rules can vary by the type of plan or by the employer that the plan is with. This means that some plans cannot be split straight down the middle. Further, if a former couple still wants to split up retirement plans, one or both individuals may end up having to pay taxes.
Ultimately, both individuals should go into the divorce understanding that their finances will be impacted regardless of how well they are able to work together. As such, people going through a divorce later in life should make sure that they understand what their finances will be once the divorce is finalized.
During a divorce, there are many mistakes that can be made, especially when it comes to the division of financial assets.The problems can be exacerbated when one or both parties want to get the process over with as soon as possible, as this can lead to unwise decisions. A divorce attorney could in such an instance take the lead in negotiating a comprehensive settlement agreement.