Once you make the choice to file for divorce, you may then wonder how that decision will affect you as you move forward. Not only will you have to divide your marital property, you will also have to consider how this process will impact your retirement plans. Whether you are fast approaching your planned retirement date or you are new to the workforce, it's always prudent to think ahead.
One important factor to consider as you walk through the divorce process is to think about how your choices will affect your life as years go by. What seems right in this moment may not actually be best for you in the long run. It's smart to seek guidance and consider both the short and long-term consequences of your choices while walking through the divorce process.
What you may not know
Divorce is difficult, and sometimes people may overlook how the process can impact their future, specifically relating to retirement savings. Before you agree to the terms of an agreement or do anything else that may affect your future, you will find it beneficial to consider the following:
- Did you know that you may be able to claim Social Security benefits based off your ex-spouse's work history? This depends on how long you were married as well as the current marital status and ages of both parties.
- IRAs and 401(k)s are also subject to division in a divorce. These are complex accounts, and a specific legal document called a qualified domestic relations order may be necessary to appropriately distribute these assets.
- When making choices regarding the marital home, you will have to consider possibilities like selling the home, keeping the home or buying out the other spouse's share of the home.
The financial aspects of a divorce are complicated, and it's not always easy to know exactly how to move forward and make smart choices that will make sense for your unique situation long term. This is why many in Oregon find it beneficial to seek the guidance of an experienced legal advocate who can help them at every step.
It can be helpful to seek legal guidance from the very beginning of the divorce process. An assessment of your case can help you make choices that will allow you to have a strong and stable future. It is inevitable that your divorce will impact your retirement plans, but you can secure terms that will allow you to look to your golden years with confidence.