Annuities in Oregon Divorce Mediation: Mediator Matthew M. House, J.D.

Annuities are a property interest in an Oregon divorce.  Like whole life insurance policies, annuities should be handled with utmost care and precision so as not to inadvertently diminish their value or incur avoidable tax consequences.  Matthew will help you to do so. If you have one or more annuities in your portfolio, here's what you may need to know:

• Matthew will request several documents from you.
• The terms of the annuity contract will heavily influence the scope and desirability of your options for addressing the annuity in your divorce.
• With an annuity, depending on the language of the annuity contract and other plan documents, there is usually one ideal option, one pretty good option, and countless ways to cause the asset to diminish in value without intending to. Matthew will help you exercise great care as you decide what should happen to the annuity in your divorce.
• The taxation of annuity is similar to that of an IRA, with penalties for early withdrawal. Transfer to another annuity will most likely be treated as a transfer incident to divorce and will not trigger taxation.
• Matthew will very carefully draft the provisions concerning the annuity. Sometimes, even one word could make the difference between the intended outcome and a much less desirable one.
• Once the divorce is finalized, the process of handling the annuity according to the terms of your agreement is not very time-consuming.
• As with all aspects of your divorce, Matthew will review the short-term impact, long-term impact, tax ramifications, potential feasibility issues, pro tips, and pitfalls to avoid concerning the annuity.