Couples typically start out with a plan for their future by buying a house, planning for their children’s education and their own retirement. Often they are not thinking about a time when the marriage may come to an end. Never did they imagine they have to rebuild their own financial future. Two assets that are divided as part of a divorce are retirement funds and pensions. All the financial planning for the future is now in jeopardy when there is a divorce.
Older people facing divorce are in a much more precarious position. They have less time to work so they can rebuild their own retirement nest egg. For women, who are often earning less than their husbands and who were home for several years with the children, divorce can be more financially daunting.
What is a person to do? The short answer is to have a plan. A recent article from Fidelity has a great checklist of things to do and not to do when divorce is happening. https://www.fidelity.com/viewpoints/personal-finance/women-and-divorce The list is useful in organizing information and thinking ahead. What is equally important to keep in mind is the fact the retirement plans and pensions could likely be split in half. Keep in mind when talking with a financial planner to discuss how to stay on track with planning for retirement because that goal can be met still despite a divorce.
Do you have questions about how your marital retirement plans and pensions could be affected by a divorce? Contact experienced family law attorney Jessica L. Sterle to schedule a consultation by calling (218) 722-2655.