Many people in Virginia understand that it is important to plan financially for their future, so they contribute a certain percentage of each paycheck to a retirement account. Some people are even lucky enough to have pensions, and many also count on receiving Social Security benefits to help fund their retirement. However, what happens to one's retirement assets in the event of a divorce? With so much money at stake, especially in a high-asset divorce, it is important that both parties to a divorce walk away with a fair portion of their retirement funds.
When a high-profile couple decides to divorce, their personal life can be placed in the limelight. For example, people in Virginia may be interested to hear that the founder and CEO of Amazon has announced he and his wife are ending their marriage. Touted as the world's richest person, Jeff Bezos and his wife had been married for 25 years. The couple undertook a trial separation before making the ultimate decision to divorce.
Property division, especially in a high-asset divorce, can be a tricky issue. It is often not as simple as just dividing everything in half. Virginia is an "equitable distribution" state, meaning asset division will be handled in a manner that is fair, even if it does not result in an exact 50/50 split. When couples have highly valuable assets, such as a home, investments, a business or more, it is important that each spouse's interests are protected if they divorce.
When a couple is engaged and planning their dream wedding, they may not wish to dwell on negative topics. This may include putting off executing a prenuptial agreement. While they may recognize that a prenuptial agreement can be a valuable part of any marriage, they may simply be too busy or too preoccupied to execute one before their wedding day.
Virginia is an equitable distribution state, meaning that marital property will be divided fairly (although not necessarily equally). Retirement accounts may be considered marital assets that are subject to division, meaning that it is possible for a person to walk away from a divorce -- even a high-asset divorce -- with a significant deficit in their retirement savings.
According to a survey conducted by Worthy, an Internet marketplace, 46 percent of female respondents who were contemplating divorce, were in the process of divorcing or were currently divorced reported that they experienced unexpected financial issues due to the split. This is significant, especially in a high asset divorce where financial issues may take center stage. It is important for spouses of either sex in Virginia to anticipate the following financial issues they may experience due to divorce, so they can sufficiently prepare for them.
Some of the hardest decisions a couple going through a divorce in Virginia will have to make have to do with dividing their property. After all, over the course of their marriage they may have accumulated many highly-valuable assets such as a house, vacation home, artwork, investments, retirement accounts and more. Moreover, there are assets that may not necessarily have a high retail value, but have a high sentimental value. While some couples are able to work out their property division issues on their own, others may need to look to the court to determine how some or all of their property will be divided.
When a wealthy couple in Virginia decides to divorce, there is so much at stake. The couple may have spent years or even decades amassing a substantial amount of financial wealth. They may own several pieces of real estate, they both may have a lot of funds held in retirement plans, they may have valuable stocks and investments and more. When it comes to divorce, even if both partners are on the same page in that they want to end their marriage, rancor can still be present and disagreements can occur throughout the divorce process. However, there are some behaviors a spouse should avoid doing, especially in a high-asset divorce.
Some couples in Richmond who have significant wealth going into a marriage will execute a prenuptial agreement to protect their separate financial interests in the event of a divorce. However, some high-asset couples may have thought a prenup was unromantic or unnecessary, and did not execute one before walking down the aisle. While everyone thinks their marriage will last "until death do us part," the fact of the matter is that many marriages will end well before that. Even in the absence of a prenup, there are steps couples can take to protect their financial interests should they divorce.
A marriage can last a long time, but even couples in Virginia who have been married for decades can one day decide to divorce. But, older couples will have to keep retirement in mind when it comes to property division. This is especially true in a high asset divorce.