When young marrieds split up, the biggest issue may be who gets the dog. However, when divorce happens later in life, it can present some truly unique challenges.
A recent Forbes article titled “4 Divorce Mistakes That Can Derail Retirement” is a good hip pocket guide to help you stay in the clear.
So, what is a divorce “mistake” that matters?
First, here is some perspective: you are dividing your life up at a time when your life savings are more than just a full piggy bank. There is more at stake than your dog. In fact, your life savings will be needed shortly to fund your retirement needs.
Accordingly, a late-in-life divorce mistake that will cost you is one that does not carefully consider the value and use of the assets you share, or the costs.
In brief, mistakes include:
- Blithely choosing the house over other financial assets
- Ignoring the tax implications of retirement funds
- Rolling a spouse’s retirement account directly into an IRA immediately after divorce
- Dipping too much into retirement savings because of the tax penalty waiver
Now, this list is really just the beginning. What about your estate? Effectively, divorce is also a threat to your current estate and future plans for it. Are you ready for half of it to disappear?
Reference: Forbes (August 21, 2013) “4 Divorce Mistakes That Can Derail Retirement”For more information on estate planning please visit ocelderlaw.com.