When a marriage is over, the two parties will have to divide their community property. This includes real estate purchases by both parties, jointly owned assets and retirement savings. When a California spouse is confronted with the possibility of leaving the marriage with less savings, he or she may wonder what to do during divorce with the intention of protecting future interests.
Divorced individuals tend to have less money in savings for retirement than married people do. Women tend to fare worse than men in divorce, and they typically have less saved for long-term needs than divorced men. For some, it’s difficult to recover from the financial impact of a divorce because they need more of their income each month to cover basic needs. It can be complicated to adjust to life on one income.
For those contemplating divorce or already engaged in the process, it is important to prioritize retirement savings in negotiations. Once the divorce is final, smart investment choices are essential to recoup losses and begin building toward a strong future. Careful planning can help one avoid unexpected financial setbacks after a divorce is final, and this is particularly important for those who are divorcing close to retirement age.
Protecting future interests should be a goal in divorce proceedings. With help, a California spouse can be intentional about shielding retirement savings and preserving long-term financial stability. Before agreeing to the terms of a financial settlement, it is helpful to speak with a legal professional for a careful evaluation of the potential impact of the terms.