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Do not forget this important asset when divorcing over the age of 50

Divorce at any age is challenging, but for couples over the age of 50, the stakes are particularly high. This is especially true when it comes to what is arguably one of the most important assets for anyone at or over the age of 50: retirement accounts.

Often one of the largest assets in these cases, retirement savings require careful handling to help better ensure that both parties can maintain their financial security into their later years. You worked hard to build these accounts. It is important to work just as hard to get your fair share so you can transition out of the workforce.

How does the division of retirement assets work during divorce in Ohio?

Ohio law generally treats retirement assets as marital property if accumulated during the marriage, which means they are subject to division during a divorce. Ohio courts generally split assets as “equitably” as possible between both parties. There are instance when it will vary from this general rule, such as the presence of a prenuptial agreement or if there was financial misconduct by one of the parties.

It is also often important to get a Qualified Domestic Relations Order (QDRO) when dividing retirement assets like 401(k)s and pensions. It allows for the transfer of retirement funds from the plan holder to the ex-spouse without early withdrawal penalties.

How can I protect retirement assets during divorce?

Protecting your interests when dividing retirement assets necessitates strategic planning and, often, professional advice. Consider these steps:

  • Hire a financial advisor: A professional can provide valuable insights into the long-term effects of different division scenarios.
  • Understand the value of different assets: Not all retirement assets are created equal. Know the tax implications and growth potential of each asset before agreeing to a division.

Taking these steps can help to better ensure that you make informed decisions that protect your financial future.

For individuals over 50 going through a divorce in Ohio, understanding and protecting retirement assets should be a top priority. The division of these assets can significantly impact your financial security during retirement. By educating yourself about how these assets are treated under Ohio law and taking proactive steps to safeguard your interests, you can help ensure a fair and secure financial future.

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