Divorces are very personal affairs, often involving issues of child custody, property allocation and support payments. A Texas couple that has been saving for retirement through many years of marriage may find that the retirement plans that fit them as a couple are not as good a fit for two individuals with two income streams and two sets of expenses.
An individual who is divorcing may seek the services of a financial planner during the divorce to assure that financial assets are divided evenly and after the divorce to help create a new financial plan that matches the individual’s post-divorce living situation. If the post-divorce financial picture is bleak, the individual may have to make spending reductions in other areas in order to ensure adequate income at retirement.
A good time to review available retirement assets is right after a divorce. A retirement plan sponsored by an individual’s employer or an individual 401(k) plan can be evaluated to estimate how much money should be contributed to support an individual’s lifestyle in retirement. Social Security benefits may also be different for an individual who has been divorced. The decision regarding when to begin receiving Social Security benefits may be affected by a divorce.
Division of property can be a very contentious issue in a divorce. If the property includes accounts or other assets that are part of a retirement plan, those assets should be appropriately valued. An individual who is contemplating divorce may want to seek the assistance of a lawyer with experience in family law. The lawyer may be able to advise the individual regarding how retirement assets will be valued in the property settlement so the individual does not have to start from scratch with his or her retirement plan after the divorce.