Divorce rates among adults over the age of 50 in Colorado and across the United States greatly outpaces the rate among younger couples. Since 1990, the rate has more than doubled among those who are 50 and older versus only a 14% rise among those ages 40 through 49. Divorce rates dropped by about 21% among couples ages 25 to 39.
IRA Accounts Can Complicate a Gray Divorce
With a rising percentage of adults with “gray” hair going through a divorce, issues regarding an individual retirement account (IRA) become more contentious. This is especially true when one individual already collected early IRA retirement distributions or entered into early retirement and is drawing retirement income from the account. The IRS provides no formal guidance when it comes to equitable distribution of IRA assets during a divorce. That includes matters involving 401(k), 403(b) and other retirement accounts.
Prior Decisions Often Contradict Others
Further complicating the matter, many local divorce courts issue rulings that contradict one another. Contradictory legal rulings make it virtually impossible to follow legal precedence, and the IRS is not providing any guidance. Whether you are the person whose IRA account is in question, or you are the individual seeking equitable distribution of the retirement asset, the potential for a divorce ruling to go against you is just as great as obtaining a favorable ruling.
Experienced Colorado Divorce Attorneys Can Help
When it comes to determining how to fairly divide IRA accounts and other retirement assets, an experienced divorce attorney in Denver can help to ensure you get a fair hearing. With divorce courts issuing contradictory rulings in Colorado and across the US, the best chance for a fair distribution is to have experienced legal help on your side.