Elise Buie Family Law | Retirement Planning After Divorce

It might seem like common sense that when a marriage dissolves, all the assets owned by the couple must be dispensed with according to the laws of the state in which the couple lived. But what about planning for the years following divorce? Day-to-day living expenses are not the only concern for divorcing couples; saving for retirement is an enormous consideration, as well.


Often times couples will have planned for their retirement as a unit, and taken into account the income of both parties when saving and structing an investment portfolio. However, divorce can throw a wrench into this plan.

When people are married, expenses are shared, making it easier financially to save money for retirement years. But, when a once united couple splits, each person has to look out for their own financial future. The costs associated with maintaining two separate households are likely to hinder the ability of one or both parties to set money aside for the future, unless they the steps necessary to plan for those tomorrows.


Sure, upon divorce, retirement accounts are to be split according to state law, unless the parties agree otherwise. But the reality that one pension is being split into half means there might not be enough to go around. That means careful and deliberate planning is necessary to ensure a financially secure retirement, post-divorce.

Financial experts advise individuals to save and invest money over time so they can live on an annual income of at least 70 percent of what they were earning during their professional career. When divorcing, it’s advisable for each party to retain their own qualified financial expert to ensure each person receives an equitable share of assets while helping their client forge a viable financial plan for their retirement years. 


A qualified, experienced financial expert can advise people about:

• Investments

• Taxes

• Estate planning

• Retirement planning

• Post-divorce budgets


It’s also wise to wait until as close to age 70 as possible before you begin to tap into your Social Security benefits. The Social Security Administration’s Delayed Retirement Benefits page (www.ssa.gov/retire2/delayret.htm) is an excellent resource for determining when the time is right to start drawing Social Security checks. It’s also important to note that retirees married 10 years or longer who did not remarry may be entitled to Social Security benefits on their former spouse’s record, if certain requirements are met.


It’s imperative to plan for one’s retirement years, regardless of whether a person is married or divorced. However, since divorce spells the end of a two-income family, or at least the end of a unified household sharing expenses, planning for one’s retirement years is all the more crucial. The personal and financial disruptions caused by divorce make it easy for newly single individuals to neglect their retirement planning. To ensure your future,  seek appropriate advice and take all necessary steps to keep your retirement planning on track.

STAY UP TO DATE

Subscribe to our newsletters

 
Subscribe to one or more of our newsletters, delivering meaningful insight on topics that matter to you and your family.

FURTHER READING

Latest Blog Posts

Divorce can be a time of confusion and complexity. In addition to any emotional or other stress, your divorce can impact both your and your ex’s will. Therefore, it is important to understand what that impact may be and what…

While software developers are among the professions with the lowest divorce rates, coming in at 20.3%, workers in the technology sector who divorce face specific challenges during the divorce process. From how to locate and divide assets to determining parenting…

For parents, divorce often raises many questions surrounding extracurricular activities. These questions usually include whether the children will get to participate in the extracurricular activities (sports, performing arts classes, music lessons, art classes, etc.) they did before the divorce, expanded…

Divorce is a time of transition, which can bring about changes in your professional life as much as it can in your personal life. Perhaps you are one of the ones, like many, who have decided that a fresh start…

Becoming a single parent, especially after being married and having a partner to share in the physical and emotional labor, can be a challenging transition. The role of single parent, even for those in a healthy co-parenting relationship with their…

If you are in love and looking to plan a life with your partner, congratulations. This is an exciting time for you both, and the goal is that the relationship will stand the test of time. However, a recent study…

Divorce is not only about protecting assets and deciding who will keep the marital home afterward. Divorce is about re-envisioning your life following the end of a marriage and about discovering who you are today. This may include learning about…

The expression “in sickness and in health” is common in wedding ceremonies of all faiths. So when most people recite these words, it is probably safe to assume that they envision themselves married at a time when the unthinkable may…

Instead of marrying, increasingly, more couples are choosing to cohabitate outside of marriage. Many couples decide this for a variety of reasons, including testing the waters about whether they are suitable to live together as a couple or don’t believe…

Divorce can be a relatively straightforward process if you and your spouse are on good terms and can agree on certain issues in your case. In such a situation, you can file for an uncontested divorce which is often a…