Most couples today likely understand that the happily ever after in a marriage may not be attainable. For those couples who come to the realization that a marriage is no longer sustainable, there are many questions about how an impending divorce may affect future retirement plans. Texas residents who are preparing for a divorce while looking to save their retirement dreams may place an added emphasis on the property division aspects of their proceedings.
Those who are ending a marriage relatively early on, may not need to alter their retirement plans extensively. However, for those who are closer to retirement age, more in-depth planning may be necessary in order to reach the desired goals. One of the first steps is to determine what one’s current and future living expenses will require. Couples who did not have either a pre- or postnuptial agreement regarding any retirement savings plans may need to work to reach a suitable agreement on how to split any existing accounts.
After one has a clear idea of living expenses post-divorce, it may become necessary to postpone retirement until finances improve. Furthermore, dreams of retiring in another state may also be put on hold, whether due to child custody issues or logistics of the divorce process. If an older couple still have minor children in the home, then Social Security benefits could play a role in financial matters. When it comes to dividing retirement accounts, certain assets require court-approved documents in order to avoid any taxes and penalties that could otherwise significantly reduce the amounts available.
The help of an experienced divorce attorney cannot be overestimated. While a divorce may require adjustments to retirement plans, Texas residents may still be able to realize most of their dreams. A comprehensive property division agreement may provide the financial stability needed to ensure that both current and future financial goals are attainable.