Preventing Divorce from Derailing Retirement Plans

 Posted on March 11, 2014 in Divorce

Especially when you have been married for many years, getting divorced later in life and be especially complex. You're more likely to have a lot of your finances tied up together, including retirement plans and accounts. A recent study by Investors Group found that 80 percent of "gray divorcees" planned to delay their retirement because they would need to work longer than planned. Another 62 percent admitted that their savings and investments after divorce meant they were no longer able to fund their retirement accounts as planned.

Emotionally, divorce can be liberating when it's the right situation for you. Financially, you should consult with a divorce attorney for planning purposes before moving forward with your marriage termination. When your retirement date is nearing, the financial implications of divorce can wreak havoc on plans you have spent most of your life building.

If you are the partner who hasn't had much experience managing household finances, now is the time to learn. Take some time to select an appropriate budget for you on your own. Downsizing in housing is a common move made by older individuals going through a divorce. Cutting down on expenses is another way to maximize your current retirement savings. Being more aware of all your assets and liabilities can give you a better picture for planning purposes, so conduct an accounting of everything that is in your name prior to the divorce.

Whatever issues you and your spouse can come to terms on outside of court will also make the actual divorce process easier and less expensive, too. Make sure to retain legal counsel so that your rights and interests are representing throughout the divorce. If you or someone you know is concerned about the financial impact of divorce, schedule a consultation with an Illinois divorce attorney today.