IRA accounts have become a huge bargaining chip in divorce settlements, but what about IRAs received in an inheritance from a family member? Considering the new tax laws that go into effect in 2019, pretax funds from IRAs could be used to make up for tax deductions in a divorce settlement. Residents in California and other states have used inherited IRA accounts to satisfy property division in a divorce.
About 46 percent of women surveyed claim they were met with staggering financial surprises when their marriage ended. Some women in California and other states were unaware of their household's net worth when going through a high asset divorce. Surprisingly, women are eager to relinquish financial responsibilities to their husbands over the course of the marriage, leaving many oblivious that they share responsibility for the marital debt.
The rate at which American couples end their marriages has been around 50 percent for decades, and studies show most divorces result from money problems. Some believe it is impossible to have a successful marriage when money issues are at the forefront of family problems. Studies show that couples in California who have money problems during a marriage often do not communicate about finances, and the problems often end in divorce.
Right now may be the best time for those who are well off financially to get divorced. With the upcoming changes in tax laws, it may be beneficial for wealthy clients to act fast and have their agreements signed before the end of the year. In California and elsewhere, the tax burden can shift dramatically by waiting until 2019 to pursue a high asset divorce.
For some, there is a burning desire to move on with their lives after a relationship ends. The desperate need to free themselves from their estranged spouse has them shelling out millions in a high asset divorce. In California, a member of a hard rock band has asked the courts to sign off on his divorce settlement that will leave his ex-wife very comfortable.