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Retirement considerations for divorcing couples

There are many ways in which a divorce changes the life of those involved. In addition to physically splitting from one’s spouse, other things, such as time spent with children and assets, need to be divided as well. Depending on the specific financial situation of the divorcing couple, the assets that will need to be split will vary. Sometimes they include retirement plans. It is important that great care and attention is paid to the process of dividing these things since the settlement reached could have a big influence on the retirement life someone who divorces will live once it is finalized.

Some who have a sizable retirement account may assume that once divorced they will only need to save half of what they did before the divorce was finalized. According to one adviser, in reality, following divorce one should save approximately three quarters of what he or she would have done as a married couple. The many costs that arise following retirement are the reason for this. Many of these costs, such as a mortgage or rent, insurance costs, property taxes and in some cases condo fees related to where one lives, will be the same regardless of how many people reside in a home.

To live the quality of life they are interested in, following a divorce it may be necessary to work a bit longer or save a bit more for retirement. This is particularly true if someone dies not secure a favorable settlement. Taking steps to get a fair settlement at the time of divorce could reduce the chances of this being necessary.

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