When Kentucky couples who have been married for decades decide to get divorced at an older age, certain complications may arise. In many cases, older couples who are going through a “gray divorce,” or a separation that occurs when the individuals are over the age of 50, may have larger financial assets that will need to be divided.
Dividing up financial assets, which may include retirement plans, IRAs and 401(k)s, can be difficult as there could be different rules surrounding the different accounts. In some cases, dividing up certain financial assets can leave one ex-spouse with unexpected tax bills. Some assets, like annuities, cannot be divided at all. This means that couples may need to trade around the different assets so that they do not have to cash out and lose the value of their annuities.
Even though dividing financial assets can be difficult, some former couples still may decide to attempt to split up the assets on their own. However, not all financial assets and retirement plans are equal. Therefore, making decisions without understanding the consequences can have a major impact on both partners’ finances after the divorce is finalized.
The property division process following a gray divorce can be complicated. Even if the former couple is in general agreement regarding who will get what, the actual process of dividing up those particular assets can have consequences for both, especially when it comes to post-divorce budgets and tax bills. A family law attorney could help draft a divorce agreement that divides up the assets in an equitable way.