Most of us know that divorce can take an emotional toll, but it can also hit you financially if you do not plan properly. You might not be old enough to worry about retirement, but if you fail to protect your assets, you could end up facing some severe consequences in the future. Take the time to fully understand the impact divorce can have on your retirement assets and do what is necessary to safeguard your future.
Here are some tips to help ensure your divorce does not derail your hopes for a comfortable retirement:
- Get professional help: Attempting to get divorced on your own is a major gamble. You might be worried about the expenses associated with seeking professional help, but the costs you could face as a result of not having skilled representation can be even greater. If your finances are particularly complicated, you might also want to consider seeking the help of a financial adviser.
- Close all joint accounts: This should be one of the first moves you make as you begin the divorce process. Remember to close all savings and checking accounts, including credit cards and any other accounts you might share with your spouse. If your divorce is not amicable, this can be a particularly important move for you.
- Think carefully about what you want to keep: Generally, for most families, the marital home is the biggest asset and both spouses often fight tooth and nail for it. However, this is not always the wisest move. You might not be able to handle the monthly mortgage payments and household bills while still making an effort to save up for retirement. Instead of stretching yourself thin, it might be best to sell the house and split the profits.
- Remember to consider the tax implications: Simply pulling money out of your retirement accounts to split with your ex-spouse will result in some serious tax penalties. To properly divide this asset, a judge must sign off on a Qualified Domestic Relations Order (QDRO), which allows retirement assets to be split without imposing tax penalties on the owner of the account.
Divorce Attorneys in St. Louis
Choosing to move forward with a divorce is often a difficult decision and the process is one you should not endure alone. At Kallen Law Firm, LLC, our legal team recognizes that every case comes with its own unique issues and requires the highest level of knowledge. We will put our experience to work for you to help achieve the best possible outcome.
Contact our office today at (314) 441-7793 to schedule a free consultation.