Understanding Money and Divorce
Money and finances are one of the top stressors for married couples — and sadly, financial troubles and arguments related to money in a relationship can often lead a couple to divorce. While divorce can also put a damper on someone’s financial situation, there are some things that you can do financially that you couldn’t do if you were married. Here are some financial benefits you need to know.
Early Access to Retirement Funds Without Penalties
A qualified domestic relations order (QDRO) is an agreement that allows for early withdrawal from a retirement account. Having this agreement can exempt you from penalties if you are below the age of 59 ½. However, it’s essential to keep in mind that early withdrawal does not exempt you from paying income tax unless you roll the money into an IRA. If you consider early withdrawal from your retirement account, it’s crucial to speak to your attorney to get all the facts about the QDRO agreement in your divorce.
More Financial Aid for Your College Kids
If you have children heading to college, it’s no secret that college is expensive. If your divorce has lowered your income, it can be advantageous to gaining more financial aid for your child’s college education since the Free Application for Federal Student Aid (FAFSA) requires financial information solely from the custodial parent. However, keep in mind that you must include any child support or alimony payments you receive from the non-custodial parent on the FAFSA form.
Social Security Benefits for Older Divorcees
Married couples must wait for their husband or wife to file for social security benefits before they can claim social security spousal checks. However, If you were married to your spouse for at least ten years, and he or she has reached age 62, you are entitled to apply for social security spousal benefits when you retire.
Are you considering Divorce? We can Help.
Divorce is not an easy decision to make. Not only is it an emotional life event, but it can be financially strapping as well. However, being prepared and having professional legal help protect your finances and other assets can make all the difference. When it’s time for you to begin the divorce process, consulting an experienced attorney can help you receive the best possible outcome of your case. Know that you are not alone, and Drexler Law is here to guide you through every step.
Contact our Colorado Springs divorce attorneys today at (719) 259-0050 to schedule a consultation.