As we have said on this blog before, getting divorced is far more than an emotional choice, as it is also one that can reshape your financial future. Many of our readers may need to prepare for this reality, as studies have shown that the divorce rate picks up after summer. One reason is because many people wait until their children are back in school and vacations are over. Another reason is that individuals may want to wrap up their marriage dissolution prior to the oncoming holidays. Regardless of when Roseville residents choose to seek divorce, there are certain things you must take note of in order to better protect your financial future.
One major issue to give considerable thought to is whether you would accept the home you share with your spouse in exchange for other assets of comparable value, such as retirement accounts. While there may be sentimental value to the home, it is certainly much more expensive to maintain than retirement accounts. Although the choice really comes down to personal preference, the decision shouldn't be made lightly.
Another important consideration during divorce is properly handling retirement accounts. First of all, it is necessary to obtain a Qualified Domestic Relations Order in order to access your fair share of a retirement account without severe tax penalties. This is why it is crucial to determine whether you would rather accept retirement accounts or checking and savings accounts, as the latter will allow immediate access to cash without any tax consequences.
The initial and long-term financial ramifications of divorce can be severe. This is why it is critical for individuals who are considering marriage dissolution to fully understand the situation and how best to approach it. To learn more about the most appropriate way to tackle their unique situations, individuals should consider contacting a family law attorney of their choosing.