Divorcing in your retirement years is growing in popularity, but it carries some significant financial risks. Investment income, Social Security benefits, and other financial instruments must be split equitably according to the law, without leaving one party without the money necessary to support themselves after retirement.
It is best for both parties to retain financial advisors along with legal counsel during negotiations. They can work with you and your partner to create a Qualified Domestic Relations Order, which will help split retirement accounts without causing tax issues.
An article on The Huffington Post recommends these early steps in your divorce to aid your negotiations:
- Make both a pre-divorce and a post-divorce budget to show your financial needs.
- Review all retirement investment vehicles to make sure they will meet your new financial reality.
- Review Social Security benefits, especially spousal benefits. Spouses married 10 years or longer are entitled to benefits until they remarry.
- Talk with a financial advisor about resetting your expectations of your finances.
If you live in the Seattle area, Elise Buie Family Law is ready to help you with issues like these. Washington is a community property state, which has its own complications during divorce proceedings. All property gained during the marriage are considered to be owned by both partners. Splitting things equitably is difficult and requires a skilled attorney. Call today if you're facing divorce and want someone to fight for your fair share.