Aaron & Aaron, Attorneys at Law
Call today to speak to an attorney
Call today to speak to an attorney
864-551-4370 Real Estate 864-501-9579

Points to consider when dividing retirement accounts

South Carolina couples over the age of 50 may be more likely to divorce than couples in their age group in past years. In 1990, fewer than half the number of couples over 50 divorced compared to today. While the main concern among younger couples who divorce might be child custody, for older couples, the focus is often on retirement accounts.

Divorcees need to keep a number of points in mind when they consider how their retirement accounts will be divided. For example, some types of retirement accounts, such as pensions and IRAs, are taxed when money is withdrawn while others, such as a Roth IRA, are taxed at contribution. Therefore, the value of retirement accounts after tax should be considered. Furthermore, people should keep in mind that the amount of money they make will affect which tax bracket they are in. Therefore, they might want to consider having each person take a different pre-tax amount to make the amount roughly equal after taxes.

Some financial experts say that divorcees should avoid the temptation to exchange a house for a retirement account. Even if a house seems more valuable, its upkeep may be expensive. A dependent spouse may also not realize how much the retirement account is worth.

While a judge can make a decision about how a couple's property is divided, the couple also may be able to negotiate that division. It is important to strike a balance between protecting one's financial future while not dragging the process out. An individual may want to discuss the situation with their attorney to help ensure that they make practical decisions rather than decisions that are driven by emotions during a stressful time.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help? Contact Us Today.

Bold labels are required.

Contact Information

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.


Privacy Policy

133 Thomas Green Blvd, Suite 202

Aaron & Aaron
133 Thomas Green Blvd, Suite 202
Clemson, SC 29631

Phone: 864-501-9579
Fax: 864-551-2084
Clemson Law Office Map

Seneca Office
811 Bypass 123
Seneca, SC 29678

Seneca Law Office Map

Easley Office
708 W Main St
Easley, SC 29640

Easley Law Office Map

Review Us