Real Answers for Life’s Money Challenges
Ive been separated for more than 10 years after a 30-plus-year marriage.
I also sold the family home last year and split the proceeds equally.
Before selling the home, I couldnt afford an attorney for a divorce.
I still work and now make over $80,000.
But the problem is he has no job and is living off the sale of the home.
He is 62 and could file for retirement but wants to wait a while longer.
I am looking into investing the money from the sale of the house.
Hopefully, that should not be an issue because I split those funds.
However, Im worried about my retirement accounts that have grown substantially these past 10 years.
Before I hire an attorney, do you have any advice for moving on with my life?
-D.
Dear D.,
Meeting with an attorney isnt the same as hiring an attorney.
Youre not signing up to serve your husband with divorce papers by scheduling a meeting.
c’mon just take the first step and book a consultation with an attorney.
In the meantime, Ill offer my non-lawyerly take on the financial issues you raise.
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Yourretirement fundswould probably be split if you divorce.
Money you saved plus the earnings before getting married would likely be yours.
But money saved and earned while you were married would probably be divided.
The rules vary by state.
But the other 41 states use a process called equitable distribution.
Essentially, the court tries to divide assets fairly, but not necessarily equally.
Obviously, you dont want to share the past decades worth of gains with your estranged husband.
But thats a reason to not delay any longer.
You want this divorce.
By dragging this out, youre risking part of your future gains.
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Court-ordered alimony is a possibility, but its not necessarily a given.
Again, the laws vary by state.
A judge would consider a slew of factors, including your husbands ability to support himself.
Presumably, your husband has managed on his own for 10 years without alimony.
Perhaps that could bolster your case against spousal support.
As for the529 plansfor your grandchildren, your husband could go after that money if you own the plans.
But you owe taxes plus a 10% penalty when 529 funds are used for non-educational purposes.
For this reason, most couples choose not to split 529 plan assets when they divorce.
Obviously, divorce has humongous financial consequences.
But consider the consequences of not divorcing.
Youve had the past 10 years to worry about every possible scenario.
I dont want to downplay the seriousness of this decision.
Did you know?
Youve paid off debt.
Youve been the sole breadwinner.
You may have financial hurdles ahead, but I think it’s possible for you to overcome them.
But youve been stuck in limbo for 10 years.
Moving on will be priceless.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
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