When getting married, many couples do not realize the financial implications. Some forget that the majority of personal finances will be shared unless otherwise noted in a prenuptial agreement. By focusing solely on the romantic side, many couples do not realize what they are in for.
Many of these couples will work these important topics out on their own but may fall apart later on. This could result in a High Asset divorce that leaves one party with less than they thought they would have. A High Asset divorce can quickly become complicated, especially if there are assets that one spouse hid from the other. Depending on the mindsets of the spouses involved, the divorce proceedings may be rather acrimonious.
One of the major things that can affect a High Asset divorce is the retirement plan. According to an expert, many individuals believe that the retirement plan belongs to them and them alone. During divorce proceedings, they may find out otherwise. In most states, a 401(k) plan belongs to an individual until the first contribution after the wedding. This contribution may come from the individual or an employer, but it often turns the retirement plan into a piece of marital property.
This means that it will likely be divided during the divorce. If the retirement plan is protected by a prenuptial agreement, then it will probably be safe unless the agreement is overturned for some reason.
Other forms of separate property can turn into marital property just as easy. This is why couples in Ohio should make an effort to better understand the financial implications of tying the knot. Once there is a comprehensive understanding, many of the financial surprises that often come with divorce will be mitigated.
Source: Huffington Post, “What I Wish People Learned About Marriage and Divorce in High School,” Katherine Eisold Miller, Apr. 25, 2012