Filing for divorce can have a serious impact on your retirement plans, especially if the marriage ends late in your career. Here are some important considerations about your retirement plans to keep in mind if you are getting a divorce.
YOUR SPOUSE MAY GET A PORTION OF YOUR PENSION In the absence of an agreement outlining a clear separation between your assets and those of your spouse, any pension or retirement funds will be considered marital property. This means that, when the time comes to divide assets, you may lose some of that money. This could in turn delay your retirement plans. YOUR FINANCIAL SITUATION COULD CHANGE Even if you do have an agreement, divorce more often than not comes with new financial responsibilities. In addition to legal fees and the higher cost associated with living alone, you may have to contend with spousal and child support.These changes to your financial situation could mean that you need to work a few more years to meet your goals. Another option is to alter your retirement plans so that youmake do with less. This, however, would require making considerable compromises. In either case, you will need to reassess your plans. YOU MAY FACE CHALLENGING FAMILY ISSUES If you and your partner have children who are minors, custody orders may impose limitations on where you can live. Even if you do not get full custody, moving away from where your children live could cause tension with them and other family members. This can also be an issue with adult children, although it is less likely. YOU CAN TAKE STEPS TO PROTECT YOUR ASSETS While each case is different, there are things you can do to limit the impact a divorcewill have on your retirement plans. Getting a prenuptial agreement is the easiest way. While these agreements have become more common recently, they are more often than not drafted by couples where at least one person is remarrying. In the absence of an agreement, however, it is best to retain legal counsel, to be on the safe side. EXPERIENCED FAMILY LAWYERSIN ST. JOHN’S, NEWFOUNDLAND Whether you would like to draft a prenuptial agreement or have questions about how to protect your assets if you are getting a divorce, Gittens & Associates has you covered. We provide a full range of legal services and guarantee that we will work hard to fulfill your legal needs. Contact us today to make an appointment.