If you and your spouse no longer get along and are thinking of getting a divorce, then there are a few things that can truly complicate the matter. Many of these complications involve money. Keep reading to learn about a few money matters that can complicate a divorce and how you can make the process a bit easier.
Pensions
If you or your spouse have a job that involves public service or the government, then you may have a pension waiting for you that pays out at the time you retire. This pension is something that you and your spouse both know about, but the money is not available until retirement. However, a pension is considered a joint asset, just like any other type of retirement account, like a 401K. And, like a 401K, the pension is a marital property that can and should be split during the divorce.
Retirement accounts may not be immediately available, but they are split during a divorce. Some divorce agreements will separate the pension and stipulate that it will be split at the time of retirement. In this situation, documentation is sent to the pension agency indicating that the spouse has a legal claim to a set amount of the pension.
Sometimes couples understand that pension splitting is a confusing process. The spouse who has garnered the pension has the option of offering their spouse a settlement that is equal to half the pension instead. Monetary sums are often provided instead of the pension, and sometimes the spouse is offered a sum that is a bit less since the spouse is receiving money right away for something they would have received in the future.
Joint Business
If you and your spouse own a business, then that business is a joint asset. This can be dealt with in a number of ways and does require the agreement of both individuals. You have the option of continuing the business as equal partners, and this will require the establishment of the business as a partnership instead of a single owner business.
You also have the option of selling or buying the half of the business that your spouse owns. This transfers the business and retains it as a single owner establishment. Also, the business may be sold and the profits are divided between you and your spouse.
If for some reason you and your spouse do not agree to the way that a business is split, then a judge will often order that the business be sold and profits split.
If you want to know more about finances and the way that money, accounts, and other holdings are split during a divorce, speak to a divorce attorney.
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