Life is very different when we are in our 20s versus our 50s. In our 20s, we are building our careers, having children, saving for our children’s education or paying off loans for our own. In our 50s, the children are probably out of the house and we are thinking about retirement.
Divorce considerations in Ohio are also very different at opposite stages in life. We may look at an asset in a different way or place a different value on other assets than we might have at younger age.
One example of this is the home. When the children are young, a spouse may have a larger interest in keeping the house. When nearing retirement, a large house with a large mortgage may not be on the top the list — especially knowing that income from a job won’t be coming in for too much longer.
Retirement assets are certainly important during a divorce at a later stage in life. Property division includes retirement assets, and a spouse may be able to access money in a 401(k) or a 403(b) without incurring the 10 percent early withdrawal fee. This can help pay for expenses incurred during the divorce or even as a way to equal the division of assets.
Although the penalty-free use of this money may be very helpful now, a couple nearing retirement won’t have the same amount of time to replenish those funds as a younger couple would. The pair may have to balance the need for the money now with the need for the money later.
Whatever a couple’s financial situation is, a divorce attorney in Columbus can provide experienced advice, pointing out different aspects of property division or even work with a third-party professional such as a financial planner where necessary.
Source: NY Daily News, “Money Pros: Don’t let divorce rip apart your retirement nest egg,” Marilyn Timbers, Aug. 14, 2013