Most Massachusetts residents spend a large portion of their working years thinking about retirement. They may set aside a significant sum of money to fund their later years, or make plans that include spending time with loved ones, travel or pursuing hobbies. However, divorce can throw a wrench in those plans, and a divorce agreement that does not carefully consider retirement needs can lead to financial turmoil.
Spouses who are facing divorce must rethink their retirement planning. In many cases, couples plan for retirement together. They set aside money in various investment vehicles, and work together to structure a plan for how they will spend their golden years. Retirement planning as an individual requires a far different approach. Savvy spouses will begin changing their views on retirement planning early in the divorce process.
In some cases, a divorce will create a financial scenario under which an individual will need to work past an anticipated retirement date. In other cases, individuals will be able to create an aggressive savings plan and make wise property division choices to allow retirement to move forward as scheduled. As with so many financial decisions, being fully informed is the best way to chart a solid course of action.
A Massachusetts divorce does not necessarily have to derail retirement plans. By working with a trusted attorney and financial advisor, individuals can pursue a division of marital wealth and a divorce agreement that supports their retirement needs. At the end of the day, retirement is a reward for decades of hard work, one that should not be delayed or eliminated simply because of divorce.
Source: Forbes, “Does Divorce Derail Retirement?“, Larry Light, July 24, 2017