Can An Orange County Divorce Destroy Your Retirement?
When you have finally made up your mind to get a divorce, it is likely that you may not think too much about how it can have an impact on your retirement. However, it is an extremely valid matter to think about. Insured Retirement Institute conducted a study which observed that about 24 percent of the divorced couples who are born after World War II felt their condition will deteriorate after retirement because of the divorce. About 23 percent of the respondents mentioned that they must work for longer years to combat the hardship. Thus, it signifies that you need to take certain measures for protecting your retirement plans. Additionally, it is better to do so as quickly as possible. After all, the financial impact of a divorce can actually last for many decades. Check out some ways to ensure that your retirement dreams are on a proper track irrespective of your divorce.
Retirement and divorce
Although your divorce could be taking place many decades before your retirement date, it is likely that your retirement savings may be badly affected. First of all, a divorce would typically mean that your retirement funds could be split between your former spouse and you. As a result, you may find a substantial reduction in your retirement savings. Secondly, a divorce also signifies that soon it will be a single income household albeit temporarily. Thus, it is possible what you would be able to save quite less for your post-retirement years as compared to what you had initially anticipated or planned.
Divorce and your retirement savings
Local as well as state laws ascertain the manner in which your retirement savings will be split between your former spouse and you. In case you are residing in one of the community property states, any assets acquired by your spouse or you during the course of your marriage are regarded as joint property irrespective of who saved the money. California is also an example of a community property state along with other States like Washington, Texas, Arizona, Louisiana, Wisconsin, Idaho and New Mexico.
The most certain technique to ensure that your retirement savings are protected is to enter into a prenuptial agreement, which specifies which party will get the exact percentage of the saving in the accounts in the event of a marriage breakup. In case, you have not set up a prenup, you should negotiate with your former spouse and come up with an agreement that will benefit you both. You can hire one of the reputable Orange County divorce mediators at California Divorce Mediators to help you in the process.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
Gerald A. Maggio is a trained Orange County divorce mediator who has amicably resolved cases many cases out of court, as well as an experienced divorce and family law attorney. Mr. Maggio founded California Divorce Mediators in 2012 with the belief that although “not every marriage can be saved, every family can” and a mission to save families from the financial and emotional distress associated with traditional divorce litigation. California Divorce Mediators is located in Irvine, California, and serves the Orange County area and other counties in California offering divorce mediation, child custody mediation and mediation of other family law matters.
