Louisiana residents should learn how to save retirement assets when getting divorced. If not careful, a large part of savings can be lost without need.
Any person in Louisiana who has gone through a divorce or is contemplating a divorce understands the widespread number of concerns and opportunities for loss. While some losses associated with divorce cannot be avoided, others can be minimized if not avoided altogether. When it comes to splitting retirement accounts as part of a property division settlement, there are very specific strategies that can be used to prevent unnecessary loss of assets.
Holding on to hard-earned savings is important to anyone regardless of age. However, for people who are close to retirement ages, this issue can be especially important because they will have fewer years left to work and make up any lost savings. Statistics show this is a growing concern in the U.S. as the National Center for Family and Marriage Research indicates in a Forbes article a rise in the number of people getting divorced past the age of 50.
Because retirement accounts are intended to only be accessed after account holders reach the specified ages, any disbursements prior to that time can be subject to early withdrawal penalties as well as additional tax withholdings. When splitting funds from these accounts during a divorce, these costs can be avoided. Following are some important steps to help ensure this:
With the right information and care, thousands of dollars can be saved that otherwise disappears without good reason.
Working with an attorney during a divorce can be a great way to help keep track of details like those identified above to help save retirement assets. Contacting an attorney as soon as possible during the divorce process is always encouraged.