A Texas divorce can be a costly endeavor in myriad ways. Not only is a financial challenge, but it can be emotionally taxing. For people who are inching closer to retirement at the time of the divorce, the division of assets will be a primary concern. From the perspective of both parties, understanding how the divorce will influence their retirement savings is a critical factor to consider. Certain retirement savings and accounts may need to be split as part of the settlement. Understanding how retirement accounts may be altered and who is entitled to what is key.
Shielding retirement accounts when preparing to divorce
The National Institute for Retirement Security (NIRS) says that people who have divorced generally do not have as much money for retirement as those who remain married. This can hinder the retirement goals and living comfortably. There is a gender disparity as men tend to have far more in their retirement accounts than women do. Fortunately, there are steps to take that will protect retirement accounts and help with planning for both sides.
Social Security provides spousal benefits if the couple was married for a minimum of 10 years. When the person who may be seeking a part of the spouse’s Social Security benefits earned less, the amount they receive could be increased based on that. This may be vital for stay-at-home spouses. As the divorce proceeds, people are advised to save for retirement. This requires an honest assessment of what is in the accounts, how much will be needed to retire comfortably and to formulate a strategy to achieve those goals. Investing can be complicated and it may be beneficial to grasp what is safe, what is risky and other fundamentals to effective investing.
Legal help with dividing assets in a divorce
Older couples are especially vulnerable to problems after a divorce. They may not be fully prepared to live on their own, support themselves and deal with the stressors that accompany a new life at an advanced age. Retirement savings may be critical to a successful future. This is also something to consider for people regardless of their age as they could be negatively affected by mistakes they make during the divorce process in terms of retirement accounts and how they may be divided. When thinking about a divorce, it can help to be legally protected and understand the entire process. A firm with extensive experience in navigating the complicated terrain of a divorce and its financial implications may provide valuable advice and guidance.