The coronavirus (COVID-19) has caused so many changes throughout the world, and legal rulings are certainly not immune to its effects. The added stresses of an uncertain economy, rising healthcare costs, and quarantine procedures are leading more couples of all ages into divorce.
This article will address the issues faced in a grey divorce during this pandemic time and divorce during retirement considerations to help you protect your hard-earned assets.
Roll Over Retirement Accounts
When you choose to get a cash distribution from a retirement account, there are often financial penalties imposed. This is particularly problematic for older adults during a pandemic time when finances are a major concern. Instead, it is often in a grey divorcee’s best interest to roll over his or her portion of split retirement account assets into another retirement account for greater long-term gains.
Consider Delaying Retirement
If you are still working but have been thinking about retiring, you may want to reconsider your upcoming retirement plans right now due to COVID-19. This is especially true if you are involved in a divorce during retirement and uncertain about your personal financial future due to a layoff.
Sell Your Shared Home
Rather than letting one spouse keep the shared home after a grey divorce, it may be in your best interest to sell the home instead. This is a great way to reduce your monthly housing costs, especially when you no longer have the earnings of two people in the home. It may also be easier to divide assets in a divorce during retirement when the value of a home is liquidated.
Explore Multiple Asset Protection Strategies
Financial planning is very important during a grey divorce and during a pandemic. At the Alatsas Law Firm, we can introduce you to various asset protection strategies so that you can weigh the pros and cons and choose the one that’s best for your situation. To protect yourself while going through a divorce during retirement, you may want to consider an asset protection trust, revocable trust, irrevocable trust, living will, long-term care, or plan for Medicaid coverage. With our help, you can also minimize taxation on your estate and retain as much of your wealth as possible.
Agree on as Much as Possible Out of Court
Many court systems are experiencing delays, postponements, and operational changes due to public health orders and social distancing protocols. Therefore, it is more important than ever to settle as many matters as possible amicably and out of court. Try to come to an agreement about retirement accounts and financial investments so that you don’t to go through the hearing process in a courtroom. This is a way to reduce your risk of exposure to COVID-19 and also to get your grey divorce finalized as quickly as possible.
Work with a Grey Divorce Local Lawyer You Can Trust
The financial impacts of a grey divorce can be devastating for both men and women because there are often larger assets to divide, more complicated assets, more resentment between spouses, and the common occurrence of spouses hiding assets from each other. Especially during these challenging times, you need Theodore Alatsas, Esq. on your side. We specialize in both elder law and divorce law, and we are here for you when you are most in need of honest answers, legal empowerment, and unwavering support.
Please contact us online or by phone at 718-233-2903 for a free, remote consultation.