MOST FREQUENTLY ASKED QUESTIONS ABOUT DIVORCE SETTLEMENTS
Q. What if I bring a house into the marriage that is in my name only, and I add my spouse's
name to the title?
A. You might have made a "presumptive gift" to the marriage and should consult with a family law attorney
to discuss your options.
Q. Is my IRA considered marital property if it's in my name only.
A. Everything acquired during the marriage, no matter whose name it's in, is typically considered marital
property. If you are going through a divorce, it would be important to evaluate the financial drawbacks to
having your IRA included in the list of assets you retain, post divorce. Remember, the funds in the IRA cannot
usually be accessed before age 59 1/2 without paying a 10% penalty for early withdrawal.
Q. I have never worked. Can I get Social Security?
A. If your spouse has worked and if you have been married for 10 years or more, than you are entitled to
one-half of your spouse's Social Security or your own, whichever is higher--even if you are divorced. Your
spouse still retains 100% of his/her Social Security benefit. This is an automatic guarantee and therefore it is not
a negotiation point in a divorce. Social Security Administration website link.
Q. How do we figure how much child support should be paid?
A. Louisiana has Child Support Guidelines that are mandated by the State. However, the Guidelines get
tricky when one (or both) spouses is an independent business owner who can control their wages. In this
situation, it typically helps to bring in a financial expert who can help determine the true potential income of the
each spouse.
Q. Do we have to go to court?
A. Usually you will have to go to Court to settle custody and property issues. If you can't reach an
agreement at all, then, a court date is set and a judge hears the case. If you enter into a Collaborative Divorce
and successfully complete the process you never have to go to Court,
Q. What is a QDRO and why do I need one?
A. A QDRO (or Qualified Domestic Relations Order) is the legal document that divides up a qualified
pension or retirement account (including 401k's) pursuant to a divorce. Neither the Judgment of Divorce nor
the Property Partition is sufficient to divide up the qualified plans; a QDRO is needed, preferably before the
divorce is final. There are many nuances that go into QDRO's and make it an advocating (versus neutral)
document. In order to protect your assets, be sure to obtain qualified advice in this area from a specialist.
Q. What if I bring a house into the marriage that is in my name only, and I add my spouse's
name to the title?
A. You might have made a "presumptive gift" to the marriage and should consult with a family law attorney
to discuss your options.
Q. Is my IRA considered marital property if it's in my name only.
A. Everything acquired during the marriage, no matter whose name it's in, is typically considered marital
property. If you are going through a divorce, it would be important to evaluate the financial drawbacks to
having your IRA included in the list of assets you retain, post divorce. Remember, the funds in the IRA cannot
usually be accessed before age 59 1/2 without paying a 10% penalty for early withdrawal.
Q. I have never worked. Can I get Social Security?
A. If your spouse has worked and if you have been married for 10 years or more, than you are entitled to
one-half of your spouse's Social Security or your own, whichever is higher--even if you are divorced. Your
spouse still retains 100% of his/her Social Security benefit. This is an automatic guarantee and therefore it is not
a negotiation point in a divorce. Social Security Administration website link.
Q. How do we figure how much child support should be paid?
A. Louisiana has Child Support Guidelines that are mandated by the State. However, the Guidelines get
tricky when one (or both) spouses is an independent business owner who can control their wages. In this
situation, it typically helps to bring in a financial expert who can help determine the true potential income of the
each spouse.
Q. Do we have to go to court?
A. Usually you will have to go to Court to settle custody and property issues. If you can't reach an
agreement at all, then, a court date is set and a judge hears the case. If you enter into a Collaborative Divorce
and successfully complete the process you never have to go to Court,
Q. What is a QDRO and why do I need one?
A. A QDRO (or Qualified Domestic Relations Order) is the legal document that divides up a qualified
pension or retirement account (including 401k's) pursuant to a divorce. Neither the Judgment of Divorce nor
the Property Partition is sufficient to divide up the qualified plans; a QDRO is needed, preferably before the
divorce is final. There are many nuances that go into QDRO's and make it an advocating (versus neutral)
document. In order to protect your assets, be sure to obtain qualified advice in this area from a specialist.
| Andrew K. Hoffman, CDFA |
