New York readers know that the end of a marriage has a significant impact on every area of life, including finances. It is certain that divorce will affect retirement savings, but many people do not understand how decisions that they make in haste can have a drastically negative impact on their future. With guidance and support, a divorce does not have to completely derail retirement plans.
All property and assets accumulated over the course of a marriage is considered marital property. This includes retirement accounts, such as IRAs, investment portfolios, savings accounts, 401(k)s and more. For couples who have been married for decades, retirement savings could be significant. Division of these assets could impact expectations for retirement and intended date of retirement.
The number of older couples divorcing has increased dramatically, and for these individuals, retirement is a huge concern. While divorce will likely decrease the amount that a person has saved for life after work, it is possible to secure a settlement that still allows for a strong and prosperous future. It is important that a person not accept any settlement offer or agree to terms without first consulting with an attorney.
When a New York reader is facing a divorce, it is always in his or her best interests to secure appropriate guidance as soon as possible. When nearing retirement, an experienced attorney can help a person make decisions that are best for long-term well being. Divorce is difficult, but a person does not have to go through this process alone.
Source: The Washington Post, "Divorcing late in life? Don't let it destroy your retirement.", Martha M. Hamilton, Dec. 2, 2016