Understandably, not all marital unions in Massachusetts last. Unfortunately, the divorce process can be unsettling for both emotional and financial reasons. A couple of tips may help spouses who are going through divorce to protect their financial interests, especially if they are near their retirement years.
First, when a long-term marriage comes to an end, it is likely that one spouse will have to make alimony payments to the other spouse. The recipient of alimony payments may be wise to use this money to boost his or her retirement fund. Of course, alimony is usually granted with certain conditions — for instance, the payments might come to a halt if the recipient becomes married. This is worth keeping in mind as the alimony recipient plans for his or her future.
Second, continuing to invest retirement dollars is critical. During complex financial situations, an individual may be tempted to use his or her retirement savings to cover immediate needs. However, this may end up jeopardizing the individual’s retirement plans while simultaneously leading to avoidable fees and tax penalties.
The divorce process is generally not an easy one. However, going through a process such as informal negotiation or divorce mediation may make two divorcing spouses feel more in control of their divorce proceeding. After all, they can use these processes to produce a divorce agreement that reflects both of their wishes regarding asset division and other divorce matters. An attorney can provide the direction needed to navigate such processes confidently in Massachusetts.
Source: wickedlocal.com, “7 ways to save for retirement if you divorce later in life“, Alan F. Auteri, March 13, 2018