Every year, Kentucky residents who are over 50 years of age make avoidable mistakes during their divorce proceedings. These mistakes can end up being costly. These are three common mistakes that you need to avoid when divorcing after 50.
Failure to understand the tax implications can lead to long-term problems
One of the biggest mistakes that you can make when going through a divorce after the age of 50 is to fail in understanding the tax implications for such decisions as keeping the house or paying child support. Virtually all of the decisions that you make during your divorce settlement are going to have tax implications that you need to consider carefully.
Failure to get a QDRO can lead to issues dividing retirement accounts
A second thing that many individuals fail to do when getting divorced later in life is to get a qualified domestic relations order or QDRO. This is an order that allows for the separation and the transfer of retirement funds without having to face costly government penalties for early access.
Avoid failing to understand your insurance situation
Those who go through a divorce after age 50 often overlook their insurance situation as well. After going through a divorce, you will need to get a separate insurance plan for your car and home. It can be easy to overlook this necessity if your former spouse was the one who took care of the insurance during your marriage.
Going through a divorce is a difficult situation regardless of age. It helps to seek out a trusted and reliable attorney who can represent your best interests during your divorce proceedings.