Ed Shaw Law - No Nonsense Legal Advice
Call 800-507-0352 To Schedule A Consultation
Call
To Schedule A Consultation
Offices in St. Cloud and Brainerd, serving all surrounding areas
Coronavirus Impact and Assurance: Yes! We are still open for business!

For the last year, thanks to the hard work of all of our staff, and you, our clients, no one who works at this office has gotten Covid while working here, and we have not spread a single case to any of our clients, while getting all of our client's legal needs taken care of. With the spread of vaccination the end is in sight, normal times where we can meet our clients in person in the office are just around the corner.

During the transition we will be having some in person, in office appointments for clients who have already been vaccinated, and for whom the CDC recommended period of time has passed since their last shot. Of course, for anyone who would prefer a phone or video appointment for safety, convenience, or any other reason those types of appointments are always available.

The weather is warming up and outdoor-in person appointments are now available. The updated CDC guidelines indicate that masks are not needed for vaccinated people outside if not in close quarters; although as a precaution we will continue to practice social distancing. If you have not had your vaccination, masks will continue to be a requirement.

Through the transition safety of all staff and clients will continue to be our top priority, we look forward to seeing you soon.

Please see our blog for more info on pandemic response.

Important issues when dividing retirement accounts during divorce

| Aug 7, 2018 | Divorce

Divorce among people over 50 has been trending upward since the 1990s. Older individuals in Minnesota likely have multiple retirement plans to split when they end their marriages. They could have one or more 401(k) plans and pensions from jobs over the years as well as Individual Retirement Accounts.

An owner of a financial services company confirmed that most retirement assets qualify as marital assets. This sometimes upsets people who had not realized that they would have to give a portion to an ex-spouse in a divorce settlement.

After people have made decisions about who gets how much, a special court order called a Qualified Domestic Relations Order will be needed for each pension or 401(k) plan. This order will direct plan administrators to distribute funds. Unless recipients roll their money directly into qualifying retirement savings plans, they could owe income taxes plus a 10 percent penalty if they are under a certain age. During negotiations about the division of a 401(k) plan, divorcing spouses should check to see if loans have been taken out of the plan.

Older individuals might also own life annuities, which could lose significant value if cashed out early. To preserve value, people will need to examine the annuity contract closely and consider trading assets to avoid cashing it out prematurely.

A divorcing individual, especially someone with a high income, may want legal representation when making decisions about a settlement. Information from an attorney might help someone understand how the divorce could influence Social Security benefits or an estate plan. An attorney may work to keep their client informed about rights to certain assets during settlement negotiations. If litigation becomes necessary, an attorney may be able to organize documentation to support the person’s position in court.

Image
FindLaw Network