No matter how old you are, if you are currently navigating a divorce, it is time to start thinking about your retirement. The ways in which you and your attorney opt to approach issues of property division during your divorce process will almost certainly impact your retirement years. Especially if you have been married for a few years or more, your property division settlement should be approached with some consideration towards your retirement years.
For example, if you opt to keep your marital home instead of taking your share of your retirement savings, you may or may not be doing yourself a disservice. If you are planning on selling your house at a profit in order to replenish your retirement account and add to it, you may be making a wise decision. However, if keeping your home will essentially eliminate your retirement savings and you hope to stay in your home as long as possible, you may not be making the most informed decision possible.
Unfortunately, it can be very challenging to let other assets go in favor of holding onto your retirement savings. However, your future self may truly thank you for thinking ahead. Ultimately, it is important for you to consider the needs of your future self. When you are getting on in years, your body may not cooperate with a desire to keep working. You may want to travel or rest or you may simply need to take it easy. If you haven’t saved for this period in time, you may end up spending your golden years in a consistent state of worry about money.
Please, if you and your attorney have yet to discuss the ways in which your divorce may impact your retirement, consider doing so sooner rather than later.
Source: Forbes, “Divorced Women: How Will You Retire?” Jeff Landers, June 16, 2015