Protecting Your Retirement During an Illinois Divorce
The financial implications of divorce are well-known and, for some, highly feared. In fact, studies indicate that it takes an average of five years to financially recover. Still, it is not just a couple’s immediate funds that are affected; retirement accounts, which are often considered a part of the marital estate in divorce, may also be affected. Learn how you can mitigate against the damage with help from the following information.
Beware of Short-Term Thinking
If you are divorcing during your working years and still have time until retirement, it may be tempting to discount the impact that divorce may have on your retirement. Unfortunately, this mindset could cause you to be caught off-guard during the negotiation process. You may even be tempted to take a settlement that is not in your best interest, perhaps for an asset that does not hold the same long-term value or benefits. An attorney can examine your situation, advise you of your options, and help you understand the possible consequences of your decisions.
When Retirement is Around the Corner
Later-life divorce is becoming increasingly common, and it is putting many couples at risk for financial devastation during their retirement years. After all, most couples plan for only one retirement – not two. If this is the situation you are facing, it is crucial that you speak with an attorney about your concerns and financial future. They can help you mitigate the financial risks of divorce, and they can explain your options.
Implementing a Few Strategies
As previously mentioned, an attorney is highly advised for couples planning to divorce. However, there are some other strategies that you can use between now and when you are ready to move forward. Start by paying off as much debt as you can, and take an honest look at your incoming and outgoing cash flow. If possible, reduce the outgoing amount to accommodate any financial losses you may experience, and if necessary, seek additional streams of income to help you recover.
Contact Our DuPage County Divorce Lawyers
You cannot be too cautious in divorce – especially when it comes to protecting your retirement – and The Stogsdill Law Firm, P.C. can help. Dedicated and experienced, our DuPage County divorce planning lawyers can examine your situation now, before you move forward with the divorce, and help you plan effectively for the process. At every turn, we protect your rights and best interests. Learn more by scheduling a personalized consultation. Call 630-462-9500 today.