Divorce leads to changes in all aspects of a person’s life, including where a person lives and what the financial future may look like. Aside from an initial divorce settlement, including any alimony payable, Pennsylvania residents may want to think about the long term financial impact of a split, namely retirement. Regardless of how close or far a couple may be to retirement age, the divorce will usually affect any accounts already in place.
Any joint retirement accounts will typically be split between the parties. While this is all well and good, the ability to keep adding to those accounts may be altered. This is due to the simple fact that, with separate incomes that are no longer combined, there is less money available for investing.
One way to handle this change is to assess where a person will be financially once the divorce is final and budget accordingly. Any changes in spending as households split need to accounted for and tracked. The focus on the present may distract from retirement planning, but it is important for both parties to assess all retirement accounts and try to devise a plan to continue to save for that eventuality.
The ripple effect of a divorce can be far-reaching. An experienced divorce attorney may be able to help individuals assess what support services may be of benefit for their individual circumstances. A full scale financial analysis and plan for the future can ease the transition to life after a Pennsylvania divorce for Pennsylvania and can reduce stress so as to allow for focus on other areas affected by the dissolution of the marriage.
Source: morrowcountysentinel.com, “Resetting your retirement after divorce”, Jason Alderman, April 10, 2015