New York divorce and dealing with inheritance and retirement

On Behalf of | Nov 13, 2018 | Divorce |

New Yorkers will want to shore up their future and not need to worry about their paycheck being their sole source of income and protection. There can be different interpretations of financial freedom with the goals being individual and based on wants, desires and priorities. When a divorce enters the picture, it can throw a wrench into the most intricately devised plans. Having legal assistance with this difficult type of divorce is crucial.

A divorce will inevitably impact assets that one of the spouses might have inherited, retirement accounts, and investments. The property division aspect of any divorce is often moved off to the side as children and support take precedence. However, when people are concerned about how they are going to make ends meet and are counting on these accounts and investments to protect them, it must come to the forefront.

There is often a dispute over inherited assets. In general, a spouse’s inheritance is protected from being considered marital property. However, this is not as simple as it seems and when complexities and disagreements arise, having legal assistance is vital, especially in cases where the money became mixed and there are other documents to examine. Retirement accounts can be up for grabs in a divorce. Having a qualified domestic relations order (QDRO) can be useful to adequately divide the IRA, 401(k) or a pension. Many couples have dabbled in investments. If these are of value or could be in the future, this must be considered as marital property and dealt with accordingly.

Whether it is a young, middle-aged or older couple in a “gray divorce,” having legal advice to address property division, retirement accounts, inheritances and investments can be the most important decision made. A law firm with a history and understanding of these difficult issues should be called as soon as the decision is made to divorce to protect the client for the long-term.