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Divorce may alter your retirement timeline

On Behalf of | Aug 28, 2020 | Divorce

Figures from the National Institute for Retirement Security reveal that divorced individuals have less money saved for their later years than married individuals. This is partially because Florida law requires that money inside of a retirement account be allocated in an equitable manner. However, this isn’t the only reason why the end of a marriage can wreak havoc on your financial future.

Saving money can be difficult while on your own

After a divorce, you may be responsible for covering rent, health care and other expenses that were shared with your spouse while married. Therefore, it may be difficult or impossible to meet your savings goals or to save any money at all.

Start planning right away

Ideally, you will take time to assess your current financial situation and what you need to do to secure your financial future. If you weren’t responsible for managing the household’s finances while married, it is important to learn the fundamentals of budgeting and investing. This may make it easier to meet your goals for retirement and other long-term goals.

You may be entitled to increased Social Security benefits

If you were married to your spouse for at least 10 years, it may be possible to base your Social Security benefit payment on his or her work record. This is generally worth pursuing if your spouse made more money than you did during the course of the marriage.

Being proactive can be an effective way to remain financially secure as a single person. If your marriage is about to come to an end, it may be a good idea to seek the assistance of a family law attorney. This person may help you learn more about the property division process and how it might impact your ability to retire comfortably.