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Jennifer McCaskill
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Red Bank New Jersey Family Law Blog

High asset divorce for couples over the age of 50

The end of a marriage is complex, and some of the most difficult issues to address are those pertaining to the division of marital property. This can be especially difficult for those who have been married for decades and have extensive assets and retirement accounts to consider. When a New Jersey couple over the age of 50 decides to end their marriage, it is often a high asset divorce.

In a gray divorce, the financial issues are often complex because marital assets have been built up over many years. Sometimes, older couples facing divorce also have concerns about how this choice will impact their children from previous marriages. The number of gray divorces is increasing, and this may be because life expectancy is longer than ever and there is less stigma about divorce.

Alimony just one consideration in late-life divorce

For New Jersey seniors who are considering divorce, understanding the financial issues involved in the process is important. Dividing marital wealth is complicated, and when both spouses are at or beyond retirement age, those calculations become even more pressing. Alimony is one thing to consider, but there are many other issues that deserve attention in the early stages of a late-life divorce. 

Alimony is common in long-term marriages, especially when one partner has set aside his or her own career path to care for the needs of the family. However, the manner in which retirement savings are split is also impactful. Dividing retirement accounts can also bring steep tax penalties, which can reduce the value of those assets for both parties. 

Practical tips for those facing a high asset divorce

Divorce is complicated, but it can be especially so for those who are facing the prospect of a divorce that will involve significant assets and money. A high asset divorce can be lengthy and confusing, and it may be helpful for New Jersey readers to take the time to prepare for this process before moving forward. Even in the most financially complex situations, it is possible to reduce complications and setbacks.

Celebrities often make headlines when they go through the divorce process, often because there is a lot of money, a large home or other valuable assets at stake. These divorces are not the norm, but they can offer valuable insights for others going through a divorce can may be complicated. One of the most important considerations is the financial cost and adjustments a person will have to make when ending his or her marriage.

What if collaborative divorce not working for you?

You chose collaborative divorce because you liked the idea of a calm, rational way to get through a very difficult time in your life. You had hope this was a straightforward process that determined a path to an amicable settlement. But as the process played out, are you finding it increasingly frustrating to get the results you want? If so, maybe a collaborative divorce is not for you.

You agreed on a collaborative divorce believing that calmer heads would prevail and conclude with a mutually-satisfying arrangement for both involved. There was good reason for hope, many times a collaborative divorce works as a satisfying solution for divorce. But it is not uncommon that once you are in the collaborative process, certain items you are deliberating about can leave you more concerned than hopeful.

Celebrity lessons for spouses facing same-sex divorce

In most cases, the lives of celebrities have little to offer the average New Jersey man or woman in the way of relevant advice. An exception might be found in a recent interview with Jennifer Lopez, and her take on divorce and the road that follows. For spouses facing the prospect of a same-sex divorce in 2019, her experience might offer valuable insights. 

To begin, Lopez admits that there were plenty of dark days after her split with husband Marc Anthony. The pair share a set of twins, and her relationship with her kids is part of what sparked Lopez to seek that same level of joy in the rest of her personal life. Laughing and smiling with her kids made her realize that she had let her own happiness fall by the wayside over the years, and reminded her that she deserves to feel joy, and also has the responsibility to make things happen to achieve that level of happiness. 

Holiday tips for same-sex couples going through divorce

The first few holidays after a divorce are never easy, but there are steps that can make this time of year far more manageable and enjoyable. That's especially true for same-sex couples in New Jersey who share children. The holidays should always be focused on the children in any family, even when the parents are coming to terms with a new relationship as co-parents. 

One way to make things easier is to take the time to sit down and create a list of what makes the holidays special and meaningful. The list will differ from one person to the next but might include gratitude, service to others, religious expressions, time with loved ones, or even things like seeing a big light display, visiting Santa or decorating the house. Once that list is in place, think about how the traditions and practices the family used to share can be reinvented to keep those values in place, even with an altered family structure. 

High asset divorce cases often come with complications

Ending a marriage is no easy feat. Even if it is the best decision for the circumstances, it can still be a stressful experience. When New Jersey residents are going through high asset divorce cases, their predicaments often become much more complex. Fortunately, these complexities do not mean that an agreeable outcome cannot be reached.

When facing this type of case, it is wise for individuals to understand the assets at stake and where those assets are located. That often means finding the proper documents relating to bank accounts, property deeds and titles, and other information. If parties do not know where to find their money, it is possible for even further complications -- like hidden assets -- to occur. Of course, it can be difficult to find this information without already knowing where to look, but luckily, legal counsel can help.

Nesting is an option for same sex parents dealing with divorce

For same sex couples in New Jersey who share children, working out the details of a divorce can be challenging. One option is called nesting, and involves leaving the children in the family home with the parents rotating in and out on a schedule. That isn't a good fit for every divorcing couple, but it can be an option for some. 

One way to handle nesting is for parents to share a temporary apartment when they aren't staying in the family home. Sort of like having a roommate, only one you never spend any actual time with. The benefits of this approach is that kids get to stay in the environment they're comfortable in, without the need to change schools, make new friends, or carry their belongings from one parent's home to the other. 

Making wise choices when considering alimony

New Jersey spouses who are considering divorce may want to think carefully about the role that spousal support will play in their future budgets. That's especially true now that the tax deduction for alimony will no longer be in effect after the end of 2018. Making wise choices that are in line with one's long-term planning is an important part of moving forward. 

For those faced with a substantial alimony payment, it might be tempting to take some time off from work in order to cut the amount of  spousal support. That move, however, is almost never a good idea. The other party is unlikely to take that change as inevitable, and the matter could very well go before a court.

The retirement implications of upcoming alimony changes

Most New Jersey residents are aware that 2019 will bring new changes in the way that spousal support is handled during a divorce. Once this year comes to a close, the party tasked with making alimony payments will no longer be able to claim those expenses as deductions on his or her tax return. The party receiving those payments will no longer have to claim them as income. However, these changes are prospective only and do not affect divorces that have already be finalized.

That might seem like a good deal for the recipient, but that's not always the case. Consider, for example, a spouse who is nearing retirement age but hasn't been in the workforce for many years, having chosen to manage the household and raise the kids during the marriage. Even if that spouse gets a decent alimony settlement, he or she cannot use those funds to contribute to retirement savings like an IRA or Roth account. 

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