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Saving for retirement while preparing for divorce

On Behalf of | Jun 29, 2016 | High Asset Divorce |

Pennsylvania couples who are getting married might want to think about how they will handle finances. Often, one person tends to be better with money, but it is best if both are financially responsible and are able to pay bills and budget effectively. This may also put them both in a better position in case the marriage ends in divorce.

Another wise precaution is attempting to balance the funds in each person’s retirement account. For example, each person might put a different proportion of their income in the account so that they have roughly the same amount going into retirement. It is important to make adjustments based on the fact that one account is likely to be better than the other in terms of performance. This can also help ensure the financial security of each person in case of a divorce.

Before retirement, people should begin thinking about how they will depend on their retirement account instead of their income. Planning ahead will make this transition easier.

Unfortunately, many people’s financial lives are not this well-organized or balanced when they decide to divorce. Whether or not this is the case, a person considering divorce might want to begin by seeing an attorney and discussing their financial situation. Bringing information to a consultation such as tax forms and information on investments can help an attorney make a more accurate assessment regarding how the financial side of the divorce might play out. Divorce among older couples is much higher than in previous generations, and with decades to accumulate shared assets, these divorces might be particularly complex. However, even in a high-asset divorce, a couple may find that they can negotiate many or all of their issues without resorting to litigation and then make a binding legal agreement with the assistance of their respective attorneys.

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