During a high-asset divorce, a California couple can face challenging issues related to retirement accounts. As a community property state, California provides for marital assets to be divided evenly, and retirement accounts such as 401(k)s are included. If such an account is to be included as property division is considered, then proper handling is crucial for ensuring that the funds are accessed legally without the creation of serious tax consequences.
Within the past two decades, the divorce rate among couples over the age of 50 has significantly increased. Many of these divorces take place after decades of marriage, making the emotional and financial aspects of so-called gray divorces more life-altering and complex than divorces involving younger couples. Unlike their younger counterparts, many gray divorcees don't have to contend with child custody matters involving minor-age children. Instead, for most, the focus shifts to financial matters surrounding how to fund retirement.