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Tips on Protecting Your Retirement After a Divorce

Divorce can do a lot of damage to your finances if you do not seek the proper legal assistance, especially when it comes to your retirement. While you might not be looking to that particular horizon at the moment, it is crucial to safeguard your future no matter what stage you are at in life. You might be ready to move on end your marriage as soon as possible, but doing so without making the best financial decisions can cost you for years to come.

Here is what you need to know about protecting your retirement after a divorce:

  • Hire a professional: Divorce can be incredibly complicated and trying to navigate this yourself can result in some costly mistakes. A skilled and experienced divorce attorney will be able to assist you in finding out what you or your ex is entitled to. You might also want to consult with a financial advisor.
  • Close all joint accounts: This is an action you will want to take early on in the divorce process. Not all divorces are amicable, so closing your savings and checking accounts as well as any other credit cards is the best way to protect your finances.
  • Consider what you want to keep: In the midst of a divorce, it might seem like a great idea to fight tooth and nail for every asset, especially when it comes to the family home. The problem with this is that, without two incomes, you might find yourself unable to make the mortgage payments or household bills while still saving up for your retirement. You might be better off selling the house and splitting any profits.
  • Consider tax implications in splitting retirement assets: If you attempt to simply take money out of your retirement accounts to split with your ex, you are going to face some stiff penalties. To properly divide these assets, you need a judge to sign off on a Qualified Domestic Relations Order (QDRO), which will confirm each spouse’s right to a portion of the money.
  • Remember to change beneficiaries: Many commonly believe that if they update their will, this will effectively prevent their former spouse from inheriting their assets in the event of their death. This is not true. You need to actively change the beneficiary designations on all of your assets.

Family Law Attorneys in New Orleans

At Chehardy Sherman Williams, our New Orleans family law attorneys understand the difficulties of going through a divorce, which is why we are dedicated to providing compassionate and skilled representation. Our legal team will work with you and your spouse to find a mutually beneficial solution that does not cause you further pain.

Contact us today at (504) 217-2006 to schedule a consultation with a knowledgeable member of our team.