401K Plans And Divorce | What Happens To My 401K Funds If I Get Divorced?

What happens to 401K plan in the event of a divorce? In recent years, the rate of divorce for all married couples has more than doubled. Further, more than 25% of divorcing couples are more than 50 years old. That means that there is a higher percentage of people getting divorced older. And it’s the older people that have more developed 401K plans. Of course that’s a major concern for those considering divorce: they don’t want their soon-to-be ex-spouses getting their hands of those 401K funds!

What happens to my 401K plan if I get divorced?

When a couple gets divorced; especially a couple that has accumulated significant amounts of funds in retirement accounts, investments, life insurance and more, things get very complicated. When a human union is dissolved, all assets must be considered in the final divorce settlement agreement. And in most cases, any 401K funds accumulated during the union are considered as marital property.

It also happens to be true that dividing retirement funds, like 401K plans, is a legal nightmare. The rules are many, and also complicated to understand. There are loads of potential taxation implications to consider at the same time – check out the Suncorp superannuation calculator to help plan ahead & figure out how much you will actually have when you retire. A high percentage of attorneys have no expertise in this area, and therefore are prone to making serious negotiation mistakes. With all that in mind, it makes sense to get some education about what to keep in mind concerning your 401K if you are soon divorcing.

Most courts agree that retirement funds are planned for and contributed to by both members of a married couple. It doesn’t make a lot of sense that these funds would be thought of as belonging to one or the other, but not both. After all, the concept of marriage is all about joining together – and most judges are going to see your 401K monies joined together too.

Now, here’s the better news. If you entered into the marriage with a given amount already accumulated in your 401K, then that amount will probably be considered as separate property. Further, in some jurisdictions, any appreciation on that original amount would be looked upon as joint property. When it comes down to it, each case must be considered separately, and of course the variables can be very numerous. The exact differentiation between what is marital property and what is separate property will only be decided by the court.

The bottom line about 401K plans and divorce:

If you have accumulated funds in a 401K plan during your marriage, and are now about to get divorced, then prepare to part with some of that funding. Whatever amount has accumulated since your marriage began will most likely be seen in court as marital property. Pension disbursements, social security, life insurance, annuities and your 401K will all have to be considered, along with any other assets in question. Divorce is an ugly monster at times; one that can leave you feeling mighty broke too…

How to Manage Your Finances as a Small Business Owner

As a small business owner, I have many responsibilities. The main ones are obviously managing the business, and making sure that customers are taken care of. Customer satisfaction is important, because it can result in repeat business and word of mouth advertising. In addition, by taking good care of customers, and ensuring customer satisfaction, I am differentiating myself from the competition. If I can offer quality to my customers, I know they will stick by me, and not worry too much if my prices are slightly higher than the competition. I also want to make sure I can compete well, by maintaining an open mind and continuing my professional education.

The items I do not want to worry are my business finances. As a small business owner, I want to avoid paying too much for basic financial services. Luckily, free business banking is available for owners just like me. This allows me to avoid spending time looking for hidden fees, and focus instead of my company. The earnings I use from meeting my client’s needs are accumulated in my business savings account, until I find a project worthy of investment. This account is a central repository for all my business needs, and is the financial center of my small company. It is important to work with a financial institution you trust, which understands small entrepreneurs along the way. By building a strong relationship with your trusted bank, you would be able to leverage their product offerings to your advantage, and growing your business along the way. It is also important to keep the cash in your accounts under the limits insured by the state. In the US, accounts are insured up to $250,000.

From my business savings account I then place the money in my retirement accounts. It is important to take care of yourself as a small business owner. If you do not pay yourself a salary when you own a business, but instead choose to reinvest it back to grow your enterprise, you are not doing the best for yourself.

To summarize, it is important for small business owners to take care of themselves, by ensuring a sound financial footing. By managing their finances through reputable financial institutions, and building strong relationships with their bankers, they can manage to not only worry less about finances, but would also have a trusted advisor who can provide them with more options should the need arise.

How To Identify The Best Deals In Today’s Housing Market

The US housing recovery is opening the door for homebuyers to find affordable property across the country. There are some states that reported a more prominent turn around than others, and some Americans are in the market for more than one property, depending on the region of the country. In some cases, people are even looking outside the US for a getaway home in another nation, particularly a cottage in neighboring Canada.

You may be wondering how to find markets where housing is affordable, and how to secure a home loan in the post-recessionary world. While access to credit is definitely tighter in today’s market than access four years ago, you can still effectively find ways to secure an affordable mortgage.

Homebuyers in the south and the Midwest will on average, find better opportunities to buy than in other markets. States such as Nevada and Arizona were some of the hardest hit markets during the housing crash, which resulted in the value of properties plummeting. However, with the housing rebound fully underway, homes in these very states are now more affordable than other regions across the country.

Due to the diversity of the housing recovery, thousands of Americans are using the internet to compare mortgage lenders by state. Online comparison websites proved particularly popular for personal shopping over the years, and the same online comparison process now includes personal financial products and services such as mortgages. In only a few minutes of browsing the web, you can compare the best advertised mortgage rates from various providers to get the best deal.

If you are planning to relocate to a different state, online mortgage shopping is even more invaluable. You can view the best deals in the region you are relocating to without having to set time aside to physically travel there for a negotiation. Instead, the application can be done within your own home, saving you the hassle of back and forth discussions.

You may even be in the market for a second home, or looking for a location that serves as a vacation getaway. For example, many Americans choose to get a cottage in Canada, as the Canadian wilderness and national parks are internationally acclaimed for their rich heritage and beauty. The same online mortgage comparison can be completed using a Canadian affiliate website, which means you can save yourself the trip across the border and put in an offer on a getaway property without leaving your own city.

The housing market went on a traumatic rollercoaster ride over the last few years, and even with the recovery fully underway, people understand that the market will never be the same again. But you can still find the best opportunities to buy at the most affordable options with a little help from the web. The internet is a valuable tool for anyone who knows how to use it to their advantage, which is all the more rewarding when the tool helps you buy your dream home.