The end of a marriage will alter a person’s financial trajectory, and it’s in the interests of each person considering this process to think about how their choices will impact their future. This is especially important for individuals in California who are nearing retirement age. Divorce will affect how a person approaches his or her retirement plan, and while changes will be necessary, it is still possible to secure terms that allow for a strong future.
When a young couple divorces, they have years, perhaps even decades, to recover financially. They have time to rebuild savings, including reinvesting their share of retirement savings accumulated from the marriage. When a person is near the end of his or her career, divorce can make a dent in the savings that were planned for use during the so-called golden years.
All marital assets are eligible for division in a divorce. This means that potentially decades of combined savings could be split. A person close to retirement age may need to work longer. It could also mean that a person may have to rethink where he or she plans to retire, especially if there are any minor children involved.
A financially secure retirement is still possible after a divorce. It is critical for two people who are facing this possibility to focus on securing terms that are fair, reasonable and in accordance with California community property laws. Anyone wondering how divorce may affect his or her retirement can speak to an attorney regarding potential legal options.