Kroener, Hale & Penick Law Firm
contact Menu
Call 513-716-5940We are here to listen, learn & help

TEXTS ONLY: 513-828-7510

Divorce can place additional stress on retirement assets

Half of the households in Ohio and around the country may struggle during retirement, according to an index developed by Boston College's Center for Retirement Research. Unfortunately, the figures are even more alarming for those who have been through a divorce. Researchers say that this is largely because divorced spouses are no longer able to save money by sharing expenses. In addition, they may be facing important financial decisions for the first time.

Couples who divorce after decades of marriage may find it especially difficult to plan adequately for retirement. The problem also seems likely to get worse in the years ahead. While the overall divorce rate in the United States has remained fairly steady in recent decades, the number of couples aged 50 or older choosing to end their marriages doubled between 1990 and 2010. Many older divorced spouses rely on alimony payments to make ends meet, but changes to the nation's tax laws could make spousal support negotiations far more contentious in the future.

The tax rules dealing with spousal support were changed by the Tax Cut and Jobs Act. Starting with new divorces in 2019, spouses who pay alimony will no longer be able to claim these payments as expenses on their tax returns. Furthermore, recipients will no longer be expected to pay income tax on the money they receive. Experts say that this could result in lower alimony awards as spouses who make these payments generally pay higher rates of income tax than the spouses who receive it.

Family law attorneys may pay particular attention to retirement planning issues and spousal support negotiations when their clients are at risk of being left financially vulnerable during their golden years. Attorneys could also call upon financial planners and tax experts to help divorcing couples avoid costly pitfalls and mistakes during property division negotiations.

No Comments

Leave a comment
Comment Information

Take Action Today. Call 513-716-5940 To Talk To An Experienced And Compassionate Attorney.

Email Us For a Response

Tell Us More About Your Legal Issue

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact information

Kroener, Hale & Penick Law Firm
101 N. Riverside Dr.
Batavia, OH 45103

Phone: 513-716-5940
Phone: 513-828-7510
Fax: 513-297-7227
Batavia Law Office Map

9078 Union Centre Blvd.
Suite 350
West Chester, OH 45069

Phone: 513-716-5940
Phone: 513-828-7510
Fax: 513-297-7227
West Chester Law Office Map

Scripps Center
312 Walnut Street
Suite 1600
Cincinnati, OH 45202

Phone: 513-716-5940
Phone: 513-828-7510
Fax: 513-297-7227
Cincinnati Law Office Map

Westlake Center
4555 Lake Forest Dr.
Suite 650
Cincinnati, OH 45242

Phone: 513-716-5940
Phone: 513-828-7510
Fax: 513-297-7227
Cincinnati Law Office Map

Rookwood Tower
3805 Edwards Rd.
Suite 550
Cincinnati, OH 45209

Phone: 513-716-5940
Phone: 513-828-7510
Fax: 513-297-7227
Cincinnati Law Office Map

Texts Only: 513-828-7510

Offices In Cincinnati, Batavia and West Chester, Ohio