Last updated on April 8, 2021
Many people take a minimalist approach to divorces, especially when it comes to the financial aspects of divorce. For many divorcing parties, simply getting through the divorce as quickly as possible and moving on with life are the most important goals, so they don’t pay adequate attention to the financial considerations involved.
Although the goal of getting through a divorce with minimal conflict and time requirement is understandable, there is too much at risk financially to ignore the financial aspects of divorce. In a time when Americans’ retirement prospects are more unstable than they have been in years, it is more critical than ever to take a strategic approach in divorce. You need to maximize the financial in divorce to protect your future.
Unstable Retirement Prospects
A recent article in Investment News explores the declining potential for financial independence in retirement for a growing number of Americans. Citing a recent report from the U.S. Government Accountability Office, the Investment News article states that “[t]he three pillars of the American retirement system – Social Security, workplace retirement plans and individual savings – will not provide adequate retirement security for a growing number of people…”
There are numerous reasons for this collapse in future financial security, including a instability in the Social Security system, “which is projected to be unable to pay full benefits by 2035,” and the Pension Benefit Guarantee Corp. facing “substantial liabilities,” among other reasons.
What Does This Mean for Divorcing Couples?
Assuming the Investment News report is accurate, there appears to be a good chance that many young people will be much less able to enjoy a financially secure retirement than in years past.
If anything, individuals facing divorce need to be intentional and strategic when planning divorce strategies. The approach of ignoring financial matters in order to speed through the divorce process is likely not the best approach. There is too much at stake. You need to make sure you get the best financial outcome possible in your divorce.
Protecting Your Financial Future
When it comes to division of assets, spousal support and child support, you want to maximize your potential. Whether you are the paying spouse or the spouse who will receive support, getting the best outcome possible could be the difference between living comfortable in your retirement years or not.
An experienced divorced and family law attorney can talk you the process, create an intelligent strategy and fight to obtain you the best financial outcome possible in your divorce.
