Divorce and annuities: a costly combination
May 18, 2016 by Scott Stolz
Divorce can be a very difficult process for all parties involved. Setting aside the emotional impact, it can also be very destructive to the financial well-being of both parties. And if your client counts an annuity or two among his or her investable assets, that client’s net worth may be reduced even more than expected.
Most divorce attorneys just assume an annuity should be split evenly between both spouses, like most other assets. Unfortunately, when the divorce decree is issued by the court to do just that, irreversible damage has usually been done.
Here’s how I learned about the complexities of annuities in divorce. Several years back, a divorce attorney contacted me in hopes I would help her evaluate the annuities involved in a divorce settlement. The attorney’s client and her soon-to-be ex-husband owned 18 different annuities totaling well over $2 million. These variable annuities came in all shapes and sizes. Some were in retirement plans and some were not; most had living and death benefits, but some did not. Click HERE to read more…
