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Protecting a financial future after getting divorced

On Behalf of | Jun 26, 2019 | Divorce |

There are several steps that individuals in Georgia can take to protect their savings in the event of a divorce. First, it can be a good idea to create a budget that will take into account housing, health care and other expenses a person will need to pay on his or her own. It is fine to use rough estimates until exact figures become available. Creating a budget can help a person determine whether it is necessary to cut expenses or increase retirement contributions.

In some cases, an individual will need to work a few more years to save enough money to retire comfortably. Those who have saved less than their spouses may be entitled to ask for a portion of any savings accumulated during a marriage. Money inside of a 401(k) will need to be transferred per the terms of a qualified domestic relations order.

Individuals may also be entitled to a portion of any pension a spouse receives or is scheduled to receive. A financial planner may be able to help figure out how much money a person may need to retire and how to split retirement accounts accordingly. Financial professionals may also be able to help determine how much of a retirement account is a marital asset and what percentage may be a separate asset.

Individuals who get divorced may face a variety of financial challenges. By obtaining marital assets such as money inside of a retirement account, it may be possible to maintain a reasonable standard of living. It may also allow individuals to provide for their healthcare and other needs as they get older. An attorney may help negotiate a divorce settlement or the QDRO that facilitates the transfer of retirement funds.


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