Funding retirement after Divorce
Lately I’ve been getting a lot of questions about how to fund a retirement after divorce. This comes as no surprise as the so called “Gray Divorce” trend continues to grow. The question of how to fund retirement is complicated at any age and under any circumstances. But for those just years away from retiring who are now also facing the reality of retirement without their present mate, the question shifts into high gear from complicated to scary. The good new is, it doesn’t need to be.
Start by learning about your most basic retirement benefits through Social Security. These are retirement benefits you don’t need to fit for or about in your divorce. That is because you do not need a court order to get a qualified share of your spouse’s Social Security benefits. The Social Security Administration has a great quick resource page aptly named Retirement Planner: If You Are Divorced. Remember that you are looking for all the possible ways that retirement can be paid for. Maybe social security is only part of the answer for you. For the majority of people there most likely won’t be one answer to this single question. So be open to adding from multiple sources.
Next review your current assets and their value - the house and any other property, life insurance and retirement accounts. Leveraging these assets are key options that need to be considered.
Once you know what is available to you, sit down with a pen and paper and start drafting the next chapter of your life. What is tomorrow going to look like for you and what do you need to make that story possible? Be reasonable and think about your bright future within the parameters of what is available to you.
Lastly, take your list of retirement necessities and make sure that each of your items are specifically addressed in any settlements and judgments that you sign or agree to. If it’s not in there, it may be difficult or impossible to enforce any agreements made outside of your written agreements or to pursue any further benefits.
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