The end of a marriage can be a stressful and emotional period, regardless of the age of those involved. However, if you are approaching the golden years, you could have additional concerns regarding the process and how it might affect your plans for retirement.
While divorce will inherently have an impact on your finances, it doesn’t necessarily have to change your retirement plans. There may also be certain financial steps you can take during divorce that could prove beneficial to seeking a favorable outcome and keeping your current plans on track.
Financial steps for divorce
Although it could be somewhat difficult to focus during such a challenging process, with the potential weight of the outcome of your divorce, you will likely want to cover every crucial aspect of the process. Some areas in which it may be beneficial to practice due diligence could include the following:
- Form a strategy: When facing divorce, preparation is key, and coming to negotiations with a strategy will likely prove beneficial to your future.
- Obtain documentation: When preparing for divorce proceedings, it is generally advisable to obtain documentation of all finances, which may also help you gain a better understanding of how to proceed.
- Identify all assets: In community property states, such as California, the division of property must be equal. However, you may still want to be diligent when identifying marital property to ensure that no assets remain hidden.
- Discover all debts: You may also be responsible for an equal share of the marital debts, and uncovering them before entering the process can keep them from catching you off-guard.
- Additional factors: When closing in on retirement, you might want to consider additional factors, such as the options regarding Social Security benefits.
There may also be certain actions or decisions to avoid during this time, such as holding onto the family home purely out of sentimental value, as the financial ramifications of such a choice could prove devastating.
Seeking guidance in the process
Negotiating the division of marital assets can be an intimidating process, and the outcome could have a significant impact on your future. With a great deal at stake, and numerous crucial aspects to cover, you might be feeling the pressure, but you don’t have to go through this alone. By obtaining guidance from someone with experience in the area, you could be in a much better position to pursue the best outcome possible during divorce proceedings, which may in turn help you look toward retirement with peace of mind.