Avoid Taking a Hit to Retirement Savings During Divorce
While the divorce rate has seen a drastic drop-off over the last couple decades, there is one demographic for which it is actually surging, and that is people over 50. The rates of “gray divorce” have more than doubled since 1990, according to information from Bowling Green State University’s National Center for Family and Marriage Research.
For couples in this situation, there are less likely to be issues regarding child support and child custody. Instead, retirement benefits start to take the forefront. If you wish to avoid taking a hit to your retirement savings during divorce, here are some strategies you can employ.
- Know your situation inside and out: Know how much money you’ve invested in your account, what the current value of the account is, how long you’ve been investing and everything about your savings picture inside and out. Have a clear goal in mind for your retirement.
- Find more income: You are going to take a big hit to your income after a divorce. Even if you’re able to hold on to most of or all of your retirement savings, you won’t be able to invest as much as you once were, simply because you’ll have much less disposable income. You should consider downsizing, but also finding new sources of income, such as a new job, or early application for Social Security, or maybe repositioned investments.
- Put off the divorce: If you are very close to some important financial milestones, you might wish to separate and put off the official divorce until you hit those milestones. Examples include Medicare eligibility and the 10-year marriage mark to be eligible for Social Security benefits based on the record of your ex.
We strongly recommend you talk to a financial advisor if you are considering a divorce while you are getting close to retirement age. For more information, contact an experienced Long Island divorce lawyer at Bryan L. Salamone & Associates.