Divorce will bring financial changes to a person’s life. No matter the financial health of a Virginia couple, both parties will face the need to make adjustments, especially when it comes to retirement. It may be necessary to adjust expectations and planned retirement dates, but it is possible to end a marriage still hold onto to dreams for the golden years.
One important thing to remember is the fact that tax laws can result in unexpected consequences when retaining certain assets or receiving spousal support payments. This is particularly crucial to consider when negotiating a substantial settlement or portion of retirement savings. If these things are not thought through carefully, it is possible for one spouse to be left with a substantial tax burden he or she cannot manage effectively.
After a divorce, it is essential to update estate plans, particularly changing designated beneficiaries on life insurance accounts and pensions. Virginia laws and other factors may impact what these changes can include, but updating an estate plan will help avoid complications in the future. It is essential to move quickly to protect personal assets and financial interests during and after a divorce, especially when approaching retirement age.
It may be necessary to adjust plans for retirement, but a fair financial settlement allows many plans for later in life to remain intact. Divorce is complex for individuals approaching retirement, and there is a lot at stake during this process. Before making any decisions in an effort to end a marriage as quickly as possible and move forward, it may be prudent to first speak with an experienced legal professional about the individual situation.