We Help You STAY Retired.

Retiring Is Easy, Staying Retired Is Difficult.

The Impact of Divorce on Your Retirement Planning

By: Income for Life
No one plans on getting a divorce, but the truth is half of all American marriages end in divorce. When it comes to retirement planning, divorce can have a hugely negative impact on your finances. In some states, couples are required to split their retirement funds with the exes, particularly if the money was earned while the couple was together. The rules for splitting assets such as retirement accounts vary by state, though, so you’ll want to work with your lawyer to ensure you are dividing that investment fairly and correctly.

Divorce often has a more severe negative impact on women. Some women may not have their own retirement account if they didn’t work outside of the home during their marriage. Others may not have earned as much during the marriage, working part time or at lower-earning jobs, meaning they’ll have less in their retirement account. While a couple may be tempted to use retirement funds to pay for their divorce, it’s usually better to find other means and leave your retirement funds alone. Rebuilding that account later could prove harder than you think.

When doing your retirement planning, it’s smart to plan for the worst. No one wants to think they’ll get divorced, but it’s smart to at least familiarize yourself with the laws and know what you could be facing. You can work with the team at Income For Life to create a retirement plan that’s divorce-proof, too. Give us a call at 888-228-8814 or contact us through our website to learn more.

Blog Categories

Tag Cloud

Checkbook

Knowing how much money hits your bank account every month is a critical part of staying retired. It’s vital that you have enough money to take care of your daily needs, housing, medical bills, long-term care, and any other unexpected expenses that come your way.

Calendar

If you’re retired, chances are you know the exact day — even the hour — your check hits the account. This sigh of relief you breathe as you confirm that money is added to your account is worth far more than the money itself.

Clock

When we talk about the clock, we are referring to how long that guaranteed income will keep coming in. While pensions and Social Security may provide some security and guaranteed income, the question we want to pose is this… why not do more of it?