Divorce often takes a huge financial toll. This is mostly due to the fact that you have to divide all of your marital assets with your ex. This includes your home in Wyomissing, the cars, investment portfolio and even your retirement accounts. Since you have probably been planning for your retirement for most of your adult life, you may be especially concerned that your impending divorce will affect it.
Fortunately, there are some things you can do to protect your retirement. The following tips can help you keep your future plans on track and your retirement secure.
Know the procedures
Whether you have a 401(k) or some other retirement plan, they all have their own rules for division due to a divorce. Take the time to read over the rules carefully so that you do not put the account at risk. In some cases, if you do not follow a plan’s rules, you could lose your rights to the assets.
Provide copies of the divorce decree
As soon as possible, provide copies of your divorce decree and any other necessary court orders to your various retirement plan representatives. If you wait too long to do this, you could run into some serious problems if something happens to your ex-husband. Also, if you delay in doing this, then the orders or other documents might become outdated and no longer have any authority to secure your share of the accounts.
Consider a prenuptial agreement
If you plan to remarry, be sure to create a prenuptial agreement in order to protect your retirement. Such a marital agreement can go a long way to protect your assets in case the marriage ends.
If you are considering divorce, it is important to take certain steps to protect your retirement. With a few simple moves, you can ensure that your future remains secure.