What is the CARES Act? How the CARES Act and Divorce Intersect Financially
The CARES Act and divorce may not seem directly connected, but the law’s financial relief provisions can significantly affect how couples divide assets and plan post-divorce finances. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is an economic stimulus bill. Its purpose was to provide financial assistance to individuals and families, healthcare systems, and small businesses and industries. On March 20, 2020, the President signed this bill into law which provided up to 2 trillion dollars in much needed relief and financial assistance to individuals and businesses suffering the social and economic impact of the COVID-19 pandemic.
Tax Implications of the CARES Act During Divorce- Early withdrawal from your retirement account.
Usually, people under the age of 59 ½ are subject to a 10% withdrawal penalty on any distribution from their retirement account. Now, the CARES Act may permit you and your spouse to withdraw up to $200,000 ($100,000 per individual) from your 401(k), 403(b), or 457(b).… View Full Article → “How the CARES Act May Impact Your Divorce”