Getting a divorce but don't want to end up broke or consuming your retirement money? keep reading to find out what is the best thing to do about it!
Divorcing your partner is hard enough emotionally to be always conscious about the financial toll it can have on you. Not to mention they are expensive and stressful sometimes, in the worst cases, if you don't pay enough attention or are not supported by a good lawyer, you can end up spending your future retirement money.
In fact, a recent study from the Center for Retirement Research at Boston College found that divorce correlates with the likelihood of financial risk in retirement. But hey, it doesn't have to be that way always, there are different ways of avoiding this. Keep reading to find out!
One hard truth but at the same time, big realization is that you understand that getting a divorce means sharing your savings with the other person. Unless your retirement funds weren’t accumulated during your marriage, an ex-spouse will have the right to them. Of course that the exception to this is if you signed a prenup, but if not don't be surprised to find out you will have to share the amount of money you made while being married. This is key.
Don't procrastinate filling for it. The longer you take to make your divorce official, the more you're exposing your money to be divided in two even though you're no longer together with your partner. So stop delaying the big decision and start thinking that once you’ve filed, any money you add to that retirement account is 100 percent yours.
Once again, if you're terribly afraid of ending with no retirement savings the best and easiest solution is to keep saving money. If you can always count on some extra dollars every month, this means that you don't have to necessarily have to touch your retirement savings.
Last but no least, try to not prolong your divorce from ending. This is pure math, if you let your settlement be stretched into a year instead of six months that means that you will have to spend more money time, and pay your lawyer for another half a year. Arguing over assets may end up costing more than the assets themselves. It’s important to keep your sights on the big picture and evaluate decisions from a business perspective, rather than an emotional one.