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Generally, if you have a 401(k) retirement account and get divorced, your spouse will probably be entitled to a share of the money. The money that accumulates in a retirement account during marriage is considered a marital asset. Marital assets are divided between the divorcing spouses. The formula for dividing marital assets depends partly on the laws of the state in which you live and partly on your specific circumstances. In community property states, marital assets in general are split 50-50. Currently, the community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In equitable distribution states, marital assets are divided equitably. The ultimate decision of what is fair is made by the court in your state. Generally, the court determines how much of your 401(k)retirement plan is a marital asset by dividing the number of years you have been married by the number of years you have been a plan member.

Generally, if you have a 401(k) retirement account and get divorced, your spouse will probably be entitled to a share of the money. The money that accumulates in a retirement account during marriage is considered a marital asset. Marital assets are divided between the divorcing spouses. The formula for dividing marital assets depends partly on the laws of the state in which you live and partly on your specific circumstances. In community property states, marital assets in general are split 50-50. Currently, the community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In equitable distribution states, marital assets are divided equitably. The ultimate decision of what is fair is made by the court in your state. Generally, the court determines how much of your 401(k)retirement plan is a marital asset by dividing the number of years you have been married by the number of years you have been a plan member.

Generally, if you qualify for Medicare coverage based on your own employment record, the coverage can never be cancelled. If Medicare insurance is based on your spouse's employment history, you might lose it when you get divorced. The key factor Medicare will consider is the length of the marriage. If you qualified for coverage based on your spouse's employment and remained married for at least 10 years, the Medicare coverage will stay with you even after you are divorced. If you were married for less than 10 years and did not work long enough to qualify for you own Medicare insurance, Medicare can drop you from its program.

Generally, if you qualify for Medicare coverage based on your own employment record, the coverage can never be cancelled. If the Medicare insurance is based on your spouse's employment history, you might lose it when you get divorced. The key factor Medicare will consider is the length of the marriage. If you qualified for coverage based on your spouse's employment and remained married for at least 10 years, the Medicare coverage will stay with you even after you are divorced. If you were married for less than 10 years and did not work long enough to qualify for you own Medicare insurance, Medicare can drop you from its program.

It is recommended that you contact the IRS when you get a divorce or legal separation in order to establish financial independence going into the future, especially if prior returns were filed as married filing jointly.

You should notify all credit reporting agencies and credit card companies about your new, unmarried status.
You should notify the credit bureaus of both your and your ex-spouse's new names and social security numbers, addresses and specify that those accounts need to be reported separately.
If you do not, transactions may be reported on the wrong spouse's account. This will help limit your liability and make you resposible for only your future obligations.

Some colleges are using billing agencies to administer monthly payment plans for tuition, room and board and books. Generally, you pay a nominal yearly fee ($25-$75) and then monthly payments prorated for projected, annual expenses. This plan is available for parents that can meet monthly cash flow payments, but do not have sufficient education savings. Check with the college's Accounting Office to determine if this type of plan is offered.

Generally, taxpayers can now put up to $2,000 a year into one of these educational investment retirement accounts. Contributions to such an account are not tax-deductible, but earnings in the account will accumulate tax free. No tax liability will be incurred on withdrawals if the money is used to pay college education expenses. For the current year, the full $2,000 contribution is available for joint filers whose Modified Adjusted Gross Income is less than $220,000 and single filers with Modified Adjusted Gross Income less than $110,000.

If you received a distribution from a 401(k)pension plan, annuity or insurance contract, the company that makes the payment will send you a Form 1099-R. This form is also sent by organizations that distribute payments from a profit-sharing plan, Individual Retirement Accounts (IRAs), or other retirement programs. The IRS will also get the same copy.

A Section 125 cafeteria plan is an employee benefit plan governed by the rules of Section 125 of the Internal Revenue Code. Cafeteria plan is a nickname for plans that give an employee a choice of selecting either cash or a qualifying, nontaxable benefit. Its purpose is to provide a method for allowing the employee to choose from a menu those benefits the employee desires to utilize. Generally, the benefits are fully or partially paid for by the employer. If the employee is required to pay for some or all of the benefits, they typically pay for them on a pre-tax basis.