The end of a marriage is an emotionally and often financially draining time. While one will recover emotional well-being over time, careful planning can help avoid the loss of retirement hopes in the aftermath of a divorce. Colorado residents who are preparing to begin the dissolution process may choose to consult with professionals on how to preserve retirement goals.
One of the first steps one can take to manage the division of marital assets is to take a careful inventory of all financial and real estate holdings. Once a complete listing of all retirement accounts, investments and other assets have been compiled, it is time to determine how to arrive at an equitable division. This can be a complicated process as each account may have certain rules and penalties that can be assessed if the division is not done properly.
In some circumstances, it may be beneficial to work out an agreeable division with the former spouse. If this is not possible, then one may seek the assistance of an experienced financial professional who can help minimize the losses that may be incurred through taxes and early withdrawal penalties. There are steps that must be followed in order to divide certain retirement accounts without losing a significant portion through fees.
Once a divorce has been granted, one may despair of realizing previous retirement dreams. However, there are ways to rebuild savings and achieve one’s financial goals. In addition, if a marriage lasted 10 or more years, then it may be possible to file a claim for social security benefits based on an ex-spouse’s earnings record, which could provide additional retirement income. Colorado residents who are facing a divorce — and the prospect of losing a portion of their retirement savings — benefit from seeking the advice of an experienced divorce attorney who can help one obtain a settlement agreement that may allow one to reach retirement goals down the road.