When your youngest child leaves for college, your household enters a new stage. If you are considering divorce after a long marriage, you may have pensions, investments, several properties and old estate plans to address. Seeing how these assets connect can help you prepare for the decisions ahead.
Evaluating pensions and retirement benefits
Indiana includes property owned by either spouse in the marital estate. Courts start by assuming an equal division is fair. An inheritance, gift or large gap in earning power may support a different result.
For each pension or retirement account, ask:
- What are future pension payments worth today?
- Does the plan require a qualified domestic relations order (QDRO)?
- How will taxes and payments after the plan holder’s death affect what each spouse receives?
These details can affect how retirement benefits compare with other assets in the marital estate.
Valuing multiple real estate holdings
A property portfolio involves more than market values. Each property may have debt, rental income, expenses and tax costs. Legal and financial professionals can review appraisals, selling costs and past tax deductions. They can also calculate any taxable gain.
Possible settlements include selling properties, assigning properties to each spouse or balancing property value with cash or retirement assets.
Considering income after a long marriage
An income gap does not lead to spousal maintenance. Indiana allows court-ordered maintenance only in limited cases. These include a disability that limits self-support, full-time care for a child with a disability or short-term education or training. Maintenance for education or training cannot exceed three years.
If your marriage lasted at least 10 years, you may qualify for Social Security benefits based on your former spouse’s earnings record. You generally must be at least 62, unmarried and meet other federal rules.
Coordinating financial and estate plan changes
Your will, trust and power of attorney may still name your spouse. The same may apply to your health care directive and forms that name who receives account or insurance benefits. State law, court orders and individual plan rules may affect when you can make changes.
Timing also matters for other financial decisions. Retirement payments may become difficult to revise once they begin, and a property sale cannot be undone after closing. Reviewing deadlines and plan procedures before settlement can help ensure the final agreement can be carried out as intended.
