Home Divorce Divorce can affect retirement plans even before age 50

Divorce can affect retirement plans even before age 50

muccilegal February 28, 2019
On behalf of Richard Mucci of Law Offices of Richard Mucci posted in Divorce on Thursday, February 28, 2019.

The statistics regarding the number of couples ending their marriages seems to focus on those age 39 and under and those age 50 and above. This does not adequately address those who ages are in between. Massachusetts residents between the ages of 40 and 49 tend to deal with issues from both groups when they divorce. People in this age group wonder about their retirement plans while they also know they may face paying child support.

Numerous couples here in Massachusetts and across the country married later in life and had children then, too. This means that people in their 40s could face rebuilding their retirement accounts while they continue to support their children. This makes the asset division process crucial in order to start out their new lives with some financial security.

Going from supporting one home to two automatically takes a toll on the available financial resources. This often leaves fewer dollars each month to put toward retirement. Extending the time they work beyond what they originally thought is almost assured in most cases. No one would say that these parents would avoid supporting their children, but this will also cut into the funds needed to rebuild a diminished retirement account.

Finding a balance could take some time, but doing so is possible. It will probably require some outside assistance in order to reach a divorce settlement that allows the parties to rebuild assets for retirement while meeting family financial obligations. In addition to a financial advisor, working with a family law attorney also helps to ensure that an individual’s rights are protected and that any negotiations or court hearings result in a fair and equitable outcome.

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