Divorce can have a significant impact on your finances, including your retirement goals. Despite your retirement plans, getting divorced will result in your retirement assets getting divided according to California laws.
The thought of splitting your retirement assets with your soon-to-be ex can be difficult to accept. However, understanding how your assets will be impacted by your divorce can help you create a better financial plan for life after divorce.
Divorce will affect each person's retirement accounts in a different way. However, a new study found that divorced men and women closer to retirement are less prepared for retirement compared to married couples.
Even more worrisome is the finding that divorced women have $34,000 less in retirement savings compared to divorced men.
This finding highlights the importance of understanding how your retirement accounts will be affected after the divorce is finalized so you can create a new plan to reach your retirement goals.
Once you determine how your retirement assets will be divided, you can create a new financial plan. It is important to set a new budget to help you reach your financial goals, including your retirement goals.
You should also re-evaluate your retirement needs to make sure you are saving enough for life after you are done working. This includes evaluating how much Social Security will impact your monthly finances and how much money you think you will need each month to pay for your living expenses.
The divorce process can be complex and draining, especially when it comes to property division and your retirement assets. Working with an attorney can help you review all of your options and help you plan for life after divorce.