Dublin Ohio Family Law Blog

Financial considerations for divorce after 50

The overall divorce rate in America has declined in recent years, but the divorce rate in Ohio and across the country among those aged 50 and over has significantly increased in recent years. Since those divorcing in their 50s and 60s are nearing retirement age it makes sense that divorce could have a significant impact on retirement finances. The impact on happiness and finances can be positive and negative.

Studies have shown that divorcees in their 50s and 60' are overall a happier group than those who divorce at a younger age. Married retired women are still happier but the increase in older women who are divorced has given rise to the need for new retirement strategies for this group. Financial strategies involving real estate, 401(k) accounts, pensions and Social Security can all be used to build a retirement strategy after divorce.

Unmarried with kids? Here's what to remember

When you're not married but want to start a family, you need to take steps to protect the integrity of your family unit. Fathers, in particular, must take special steps to guarantee their parental rights in Ohio. When they are not married, there is no assumption that they are the father of a child (after all, the only obvious biological parent would be the mother).

When any child is born out of wedlock, it's a very good idea for fathers to take steps to establish paternity. Even if the mother agrees that this is your child, you should make sure you are the one acknowledging paternity. If there is any question of paternity, get a DNA test to prove that you are the father of your child.

Perhaps a prenuptial agreement can lessen the chance of divorce

Marriage and divorce can be looked at as two sides of the same coin. Marriage, when flipped on its head, can lead to a divorce. One of the most common causes of a marriage leading to divorce in Ohio is a misunderstanding or deception regarding a couple's finances.

Full financial disclosure is required of both sides in a divorce negotiation. Perhaps if a full disclosure was done prior to marriage, the financial disharmony leading to a divorce would not occur. Prenuptial agreements are often looked at as something pertaining to wealthy marriages where millions of dollars are at stake in the event of a divorce. While most people don't have millions to be concerned about, one's own financial holdings are no less important.

Failure to change beneficiaries in a divorce can be costly

While the divorce rate has seen a slight decline in recent years, almost half of those who marry still face the prospect of divorce. When a marriage ends in Ohio, the couple divide the assets and are free to continue their respective lives as newly single individuals without legal ties to each other -- except where the issue of federal retirement accounts might be concerned. Failure to address beneficiary designations can have unintended consequences following a divorce.

When a person starts a new job and signs up for an employer-provided 401(k) plan, one is asked to designate a beneficiary. The beneficiary is typically one's spouse. If the employee predeceases the spouse, the proceeds of the account will transfer to the beneficiary. In the event of a divorce, the owner of the account must designate a new beneficiary, or the ex-spouse could still receive the proceeds.

High-asset divorce can be very complicated

Divorce can be sticky wicket. A high-asset divorce involving large amounts of money and other assets can be a very complex and time-consuming process that may not fully end with a final settlement in Ohio. Such is the situation in a case playing out in another state.

A couple decided to divorce. He was the Vice President of sales and an equity shareholder of a company that manufactured parts for nuclear power plants. In the separation agreement, it indicated that the wife would receive 20% of any proceeds that the husband received from the sale of the company at any time. But that language was omitted in the final divorce settlement.

Legal separation as an alternative to divorce

Divorce is becoming a more frequent occurrence among older people in Ohio and elsewhere in the country. It even has its own nomenclature, the gray divorce. Many divorces begin as trial separations and may end in divorce or a legal separation. For those who separate, divorce is not necessarily the end result of the separation. Some couples may choose to remain separated indefinitely.

Reasons for this decision can be many and are often financial. One reason couples who haven't been married that long give is the 10-year requirement for certain Social Security benefits. If a couple is married for 10 years or longer there may be Social Security advantages to waiting to divorce until after the 10-year mark. Health insurance may also be a concern if a spouse is covered by an employer. There may also be tax benefits to remaining married and filing jointly.

Co-parenting tips to keep you focused after divorce

If you have children under the age of 18 with your ex-spouse, there's a good chance co-parenting is a big part of your life in Columbus. Although it's challenging at times, with good coordination and the right approach, you can get along with your ex to provide your children with stability.

If your ex-spouse is making co-parenting difficult, such as by violating a court-approved child custody agreement, learn more about your legal rights and the steps you can take to get back on track. 

    Implication of divorce on children's summer vacations

    May is here and that means school vacations are coming. This can be a challenging tome for divorced families in Ohio with young children as summer vacation plans take shape. Even an amicable divorce can be a challenge when children are involved, even when both parents want to act in the best interest of the child. And it is now widely held that both parents remaining as involved as possible in the child's life is the preferred scenario.

    Summer vacations are a time for travel and exploration with one's children. This sometimes involves international travel. When parents are divorced the parameters around international travel are typically governed by the parenting plan included in the judgment of divorce. In a joint custody situation, decisions must be agreed on by both parties. This can be a detriment to spontaneous traveling, but proper planning can enable one to enjoy a carefree vacation with one's child.

    How might a legal separation be beneficial?

    If you and your spouse have been experiencing marital troubles for a long time, you might feel like your relationship is stuck in a rut. You may be having the same arguments over and over, but you may feel unsure if ending your marriage is really the best remedy.

    If you know something in your marriage needs to change, you may be investigating what options are available to help change your situation. Divorce and dissolution of marriage are two ways you can try to end your marriage. However, if you are not sure if you want to permanently end your marriage, a legal separation might be a better option for you.

    High-asset divorce as a business negotiation

    Divorce can be a complicated process regardless of the amount of property to be divided between the two parties in Ohio. But when a large amount of wealth is involved, it can be even more complex, especially in the wake of the new tax law that is now fully in force. A high-asset divorce can be impacted in many ways. One of the issues most affected is that of alimony.

    The person paying alimony is now the person paying taxes on the amount, as it is no longer a deductible item. This affects the amount of money available for alimony, as the tax burden reduces the payor's income. There may be steps that can be taken to improve the financial picture for both parties. One such step is setting up a trust from which an amount equivalent to the agreed-upon alimony can be paid.

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    Kemp Law Group, LLC

    Kemp Law Group, LLC
    555 Metro Place North
    Suite 300
    Dublin, OH 43017

    Phone: 614-389-1991
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