Any time a marriage ends in California or anywhere around the nation, there are always countless issues to resolve. No matter how old a couple is, the decisions made during a divorce have major implications on the lives of those involved. However, older couples may realize that getting divorced may throw a wrench in their retirement planning.
Individuals may have put considerable thought into planning for the retirement years. However, if divorce comes into play, those plans can hit a bump in the road. For example, specific legal documents are required to divide pension accounts, IRAs or 401(k) funds. Regular savings accounts and property are likely owned jointly and will also have to be divided. The consensus is that, after all the splitting of assets, divorced households have less money than those that are not divorced.
Though it may be difficult, it is important to strengthen one’s financial position after a divorce. On one hand, a working spouse may have lost half of a retirement account in the proceedings. A strategy in that scenario would be to contribute as much as possible to retirement funds going forward. Financial advisers acknowledge that this may be a challenge because of contribution limits. On the other hand, a nonworking spouse may suddenly receive a large sum from a settlement and must take steps to ensure that the money lasts over a long period of time.
A knowledgeable California lawyer can help clients at any stage in their lives to ensure that their needs are addressed during the divorce process. An experienced attorney will consider his or her clients’ situations both now and in the future. It is important to have professional guidance throughout every step of the divorce proceedings.