Tips for remaining financially secure after a divorce
North Carolina couples who are getting a divorce must be careful about ensuring their financial security. This can be a particular problem if one spouse is more knowledgeable about finances than the other or has a significantly higher income than the other. For example, while an individual might initially think that a 50/50 split of the retirement account is appropriate, this might not be the case if one person is able to quickly replenish those savings while the other might struggle to find employment.
Another thing to consider is taxes. If there are two different types of retirement investments, they may have different tax implications, so individuals should make sure that they are not going to pay a large penalty that will reduce their actual share. Another thing to find it is whether a Qualified Domestic Relations Order is necessary in order to divide a retirement account.
Finally, individuals should take steps to protect themselves in case of unforeseen circumstances. This could involve people taking out a life insurance policy on their spouse to ensure that they still receive retirement benefits or support that they are owed. They might also want to take steps to protect their children and their financial affairs in the event of their own death.
In marriages where there are a number of assets, the process of property division might be even more complex. There could be considerations such as offshore accounts and business assets. If one person owns a business, the other person might want a share of it. In many cases, these issues can be resolved by negotiations conducted with the assistance of the parties’ respective family law attorneys.