Garden City, New York – Aiello & DiFalco is proud to announce that one of our partners, Michael DiFalco, was featured in The Weekend Tea newsletter with WealthUp. In this recent feature, DiFalco shared key insights on an often-overlooked aspect of divorce: retirement accounts during and after divorce. His guidance on managing beneficiary designations for retirement accounts during and after divorce underscored the significance of updating these details to protect one’s financial future.

In the interview, DiFalco highlighted the complexities surrounding ERISA-governed retirement accounts like 401(k)s and pensions, which automatically designate a spouse as the primary beneficiary by federal law. DiFalco explained, “Most workplace retirement plans are governed by ERISA, which has specific regulations to ensure spouses are protected as primary beneficiaries.” He advised individuals navigating divorce to review beneficiary designations promptly, especially since divorce finalization does not automatically remove a former spouse as a beneficiary.

DiFalco also discussed the nuances of individually managed accounts, like IRAs, which offer more flexibility in beneficiary selection. However, he emphasized that state laws might still apply in community property states, where spousal consent is often required to designate a non-spouse beneficiary.

Beyond retirement accounts, DiFalco touched on other financial considerations post-divorce, from revisiting life insurance beneficiaries to updating estate plans to reflect new life priorities. “Divorce can be a financial reset,” DiFalco shared. “It’s a critical moment for individuals to evaluate their estate plans and long-term financial goals.”

With over a decade of legal experience and a client-centered approach, DiFalco has dedicated his practice to helping clients achieve fair settlements and plan effectively for their futures. He is known for his realistic, compassionate guidance and active involvement in the New York legal community. DiFalco’s feature in WealthUp highlights his commitment to providing clients valuable insights into protecting their financial well-being through each stage of their lives.

To learn more about Michael DiFalco and his services, visit matlawyers.com.