martes, 8 de enero de 2013

Divorce - I

Almost half of marriages today end in divorce. And because many wives have chosen to stay home and raise their children, to make sacrifices in their careers to be more available to their families, or to give their spouses the opportunity to concentrate more fully on career achievements, the financial burden of divorce usually falls most heavily on the woman
Bank or credit card accounts: If a divorce is necessary, and particularly in the case of a contentious divorce or a divorce from a partner who has financial problems, protect yourself and your credit status first. Close any joint bank or credit card accounts as soon as possible. 
Retirement plan assets: Dividing your plan assets at the time of a divorce can difficult, even if the divorce appears to be amicable and/or there are few assets beyond a house or car. Money can bring out the worst in even the best of people. State laws recognize retirement benefits as a jointly owned asset if the benefits were earned during the marriage. This means that most types of retirement plans—for example, a pension, a 401(k) plan, or an IRA—can be divided between the spouses. However, this is not automatic. To receive a part of your spouse’s retirement benefits, you need to act. As a divorcing spouse, you must get a special court order called a Qualified Domestic Relations Order (QDRO). This document establishes your legal right to receive a portion of your former spouse’s retirement plans. For example, if your ex-husband dies first, you may be eligible to receive his survivor’s benefits, but you need a QDRO to establish that. Unless you have a QDRO stating otherwise, if he remarries, designates someone else as a beneficiary, or dies without specifying you as his beneficiary of survivors’ benefits, you could be the loser. If you are contemplating divorce, visit WISER’s Web site (www.wiserwomen.org) for a list of questions you need to ask in order to assert your right to pension and 401(k) plan assets. Don’t wait until it’s time to retire—that’s too late.

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