Regardless of the circumstances, the divorce process can be an extremely emotional and traumatic process for both spouses. When a couple has children, they need to deal with issues of child custody, child support, and visitation.
However, children or no children, every couple needs to determine how to split up their assets. Obtaining or terminating benefits after an Albany divorce can be complicated, which is why working with a knowledgeable and experienced attorney from our firm is critical.
States have different approaches to the division of property acquired or earned during the marriage. States like California operate with a community property standard, which means that all marital property will be equally split between the divorcing spouses upon the dissolution of a marriage. New York operates with an equitable division standard. In other words, when the spouses cannot agree on how to divide their property, a family Court will look at various factors to divide the property equitably, but not necessarily equally.
In making an equitable division, an Albany Court would review the unique circumstances and factors, such as:
A determined attorney could help an individual present a strong case for a fair distribution of marital assets by gathering supportive evidence.
When a marriage is dissolved, a former spouse could potentially lose certain future financial benefits—such as pension, life insurance, or inheritance benefits—because they will no longer be the named beneficiary.
Retirement benefits accrued during a marriage are marital property, which a Court will determine how to split equitably. However, dividing retirement benefits like 401(k)s, IRAs, pension plans, and other retirement benefits can be complicated because there can be significant tax implications and penalties—similar to if an employee tries to make an early withdrawal. In order to fairly divide these benefits without triggering a tax penalty, it is vital for couples to work with a skilled legal professional.
A divorcing spouse who wants to obtain their former spouse’s retirement benefits might need to obtain a special type of Court Order known as a Qualified Domestic Relations Order (QDRO). A QDRO requires a retirement plan to pay benefits to a former spouse. Other retirement plans, such as IRAs and 401(k)s, may need to be liquidated and divisible as cash assets.
Most homeowners and automobile insurance policies stay with the assets they are insuring, so they do not need to be split up. Life insurance policies are different. Some divorcing couples decide to liquidate their policies and turn them into cash assets. Other times, one person wants to retain their coverage.
A knowledgeable divorce lawyer in Albany could guide individuals through the proper legal channels to retain their benefits or terminate their former spouse’s benefits.
Many aspects of divorce are difficult. One of the most challenging considerations is obtaining or terminating benefits after an Albany divorce. In addition to splitting up regular cash assets, couples need to determine who will keep certain insurance policies, retirement accounts, and other benefits.
Get in touch with a seasoned divorce lawyer from our firm who could help you protect your assets and safeguard your rights. Call today for a complimentary consultation.
Colwell Law
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(518) 462-4242
200 Great Oaks Blvd