What are the options to ensure funding your retirement during a Louisville divorce? Gray divorce (where the parties are over the age of 50) has become much more common over the past decade. One of the most common challenges which must be considered in a gray divorce is how to provide adequate retirement for each spouse.
In many of these cases one of the spouses has given up their career to raise children and manage the home. In other cases there is simply a large difference between the income and earning capacity of each spouse. Many people borrow against their retirement accounts to purchase a home or retire high-cost debt. This leaves less in the retirement account to provide for their needs down the road.
There are primarily 4 strategies for funding your retirement during a Louisville divorce when the parties do not have equal financial standing. The first options should be addressed during property division. Marital assets do not have to be divided 50/50, but in a fair manner in the eyes of the Court.
Most retirement accounts were funded with earnings during the course of the marriage. Therefore, these assets are considered to be primarily or exclusively marital property, depending upon the date of the marriage, contribution to retirement accounts or qualifying earning years and the date of separation. Many of those considering divorce have not considered the division of pensions, retirement plans and accounts. The Court may set aside a specific balance or a fair division of existing retirement assets to ensure each party has a fair opportunity to secure retirement.
The second option for funding your retirement during a Louisville divorce may be in the division of assets such as the equity in the family home, other investments and property. The Court will consider the retirement needs of both spouses as the division of marital property, assets and debts is accomplished. The Court may order a larger share of marital property in consideration for a spouse with fewer retirement assets and less earning capacity.
The third path may involve permanent maintenance, especially when one of the spouses has made sacrifices to support the other or worked to support them while they obtained and advance degree or licensure. The Court may consider increasing maintenance to provide additional retirement income.
The divorce and family law attorneys at Dodd & Dodd work with our clients to accomplish their goals and objectives during a divorce. If you are concerned about funding your retirement during a Louisville divorce we invite you to review the strong recommendations of our former clients and contact us or call 502-584-1108 to schedule an appointment with one of our experienced divorce and family law attorneys.
