On behalf of Stange Law Firm, PC posted in divorce on Friday, April 8, 2016.
Divorce can greatly complicate your life. For any couple involved in divorce proceeding here in Columbia or for those who have completed the formal court hearing and who have to obtain the final order of dissolution of marriage, there are many challenges. Determining the equitable distribution of assets in a property division or working through the details of a parenting plan, there is a great deal to work through with your attorney.
One element of a divorce settlement that can be complex can involve the interplay of pensions, retirement accounts, Social Security benefits, and taxes. These parts of your property division are important, but during the divorce process can seem distant and somewhat abstract.
If you are not nearing retirement age, they may almost seem unimportant. You may be more concerned with your child custody issues such as exchanging your children on time and picking them up on the correct days, than something like the percentage of a pension you may receive upon your retirement 20 years from now.
So too, there may be a question of whether you should collect on your spouse’s Social Security benefit. Such a move may make sense if your spouse’s benefit is greater than yours is and you meet the other eligibility requirements when your reach age 62.
You should also be aware of the tax implications of these issues and consider that when determining the allocation of assets within your property division. The taxability of some of these accounts may make a significant difference in their value and this should be reflected in the overall mix of assets you obtain.
These matters can be very complex and should be thoughtfully gone over prior to your agreeing to any particular settlement in your property division.
Source: columbiatribune.com, “Ex-spouse benefits, taxes and you,” Clay Hayden, April 2, 2016