Divorce happens – and unfortunately, rather often. Current statistics indicate that roughly one third of marriages fail to go the distance.1 Retirement may not seem high on the list of pressing issues when you’re in the midst of a divorce, but neglecting it could have a significant negative impact down the road.
Most retirement accounts are structured as long-term investments, requiring regular contributions that are added over time. Those payments have a way of accumulating into sizable chunks of money. In addition, retirement assets may not appear in your joint bank statements and can be more easily forgotten – or hidden.
When the time comes for you to retire, you’ll be glad that you acted cautiously during an emotional period in your life. Here are a few ways to avoid common mistakes.
Your divorce may be inevitable, but by remaining aware that one day you hope to retire, you can lessen the financial impact. With time you’ll move on from the divorce, and with planning, you’ll achieve the retirement you’ve envisioned.
Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
1. Claire Cain Miller, “The Upshot: The Divorce Surge is Over, but the Myth Lives On,” New York Times, December 2, 2014.
2, 10 Veronica Dagher,“Divorce and Money: Six Costly Mistakes,” Wall Street Journal, May 15, 2015.
3, 5, 7, 8 Constance Gustke, “Retirement Plans Thrown Into Disarray by a Divorce,” New York Times, June 27, 2014.
4, 11. Wendy Spencer, “5 Biggest Divorce Mistakes Financially,” USA Today, March 7, 2015.
5. Women’s Institute for a Secure Retirement, “Social Security and Divorce: What You Need to Know,” WISER Women. Org., 2010-2015
6. Jeff Landers, “Divorcing Women: Will the New Tax Laws Impact Your Divorce Settlement?” Forbes, February 20, 2013.
9. Michael Smith, “Divorce Disability Insurance,” Advisor Today, July/August 2015.
This material is intended for general public use. By providing this material, Guardian is not undertaking to provide investment advice for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial professional for guidance and information specific to your individual situation.