People who are contemplating divorce are almost always concerned about their financial future. Although they believe they will be happier if they exit their marriage, an individual may stay with their spouse in part because they fear the economic devastation that sometimes accompanies marital dissolution. Still, when considering one’s overall quality of life and also control over one’s own circumstances, divorce may be the better option when compared to staying in an unhappy marriage.
For starters, divorce does not automatically mean that people have to give up their retirement plans, but there are two important considerations that people will have to address, especially if they start thinking about divorce later in life.
They will almost surely need to split their savings
Retirement savings and pension benefits will typically only be in the name of one spouse. Of course, the name on the account is far from the most important consideration when the Connecticut family courts decide what assets are subject to division.
It will be the date of the contributions made to the account that matters the most when determining how much of the retirement savings or pension benefits may be subject to division and divorce. Generally speaking, people can expect to share whatever they put aside during the marriage or at least account for the value of those savings when dividing other property.
They will need to maintain a separate household
What a married couple set aside for retirement reflects what they believed would be necessary to support the two of them sharing a living space. What people set aside may not be enough, especially after splitting it between two people, to maintain two independent households.
People may need to adjust their investment strategy, continue working for a few extra years or change their retirement plans to adjust for the impact that divorce has on their retirement savings. When those preparing for divorce carefully consider both of these issues, they may have an easier time putting together a workable plan for preserving their financial stability after divorce.
Seeking legal guidance to better understand what to expect during the planning stages for a high-asset Connecticut divorce can help people feel more confident about making this major life transition.