Going through a divorce in California may leave you questioning your past efforts to plan for retirement. Because courts may consider retirement benefits to be marital property, you may have to divide a significant portion of your accumulated assets with your soon-to-be-ex.
Working with an experienced divorce lawyer is a first step in the right direction to rescuing your retirement assets. Your ability to keep them intact during the divorce proceedings is a lot easier than attempting to regain what you have lost afterwards. A property division attorney can also help you start thinking now about how you will set new goals for your retirement post-divorce. Here are some issues to discuss beforehand.
Rebuilding lost assets
Identify which aspects of your retirement planning will remain intact and utilize those resources as the foundation for a new plan. When transferring funds or modifying assets such as a 401k or IRA, make sure you clearly understand the requirements for legally moving assets around without facing costly penalties.
According to U.S. News, you may wish to consider starting and consistently contributing to a savings account. A compound interest investment is a unique way of saving your money and may provide you with more benefits than a traditional savings account. Setting aside a consistent amount of money each month to save may require you to adjust your lifestyle and cut back on unnecessary expenses.
Preparing for the future
Depending on your negotiating power with your former spouse, you may be able to come to an agreement regarding the separation of your respective retirement assets. If this is not an option, take what the courts allow and then immediately begin reconstructing your retirement. Working with knowledgeable professionals may provide you with alternative ideas to help you create a long-term plan that works well with your lifestyle and future goals.