5 Mistakes to Avoid When Divorcing Over 50

This article looks at 5 mistakes to avoid when divorcing over 50.  If you wish to check out our detailed analysis on the financial implications of a gray divorce, you may go to 13 Mistakes to Avoid When Divorcing Over 50.

5. Transferring your former partner’s retirement account to an IRA

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Moving assets from one spouse’s IRA or retirement plan into another takes planning and paperwork. Nevertheless, doing so and tapping into these funds before the age of 59 ½ will have you paying the 10% withdrawal penalty. However, suppose you manage to protect your retirement assets through a Qualified Domestic Relations order (QDRO). In that case, it will allow you to make a withdrawal from your ex’s 401(k) or 403(b) without paying the 10% tax penalty.