When you are dealing with divorce, the last thing you are probably thinking about is retirement – right? However, this should be an issue that you consider during your North Carolina divorce.
The most common response to people being asked about divorce and retirement is: “I’m not able to retire for many years- it doesn’t matter.” Actually, it does matter. This is because your savings that you have for retirement will most likely be considered in your divorce. This is because retirements and 401Ks are often discussed and fought over in divorces. Then also consider that you are going to be living off of one income along with the increased expenses of living by yourself, which could also result in spending some of your retirement savings. Here are a few things to consider if you are worried about retirement and life post-work after your divorce:
if you are roughly between the ages of 45 and 64, it may be time for you to downsize your home. At this point in life, many people’s children have moved out of the house which makes it a perfect time to put the house on the market and downsize. You may decide to stay in your community or maybe it is time to move to a lower cost suburb that will allow you use some of the equity in your home towards saving for retirement. In many cases, keeping a large family home is too expensive for one spouse to maintain.
When you know how much money you have in your retirement or savings account, it will allow you to re-evaluate your current retirement plan. This retirement plan should take into account the amount of money you will have post divorce and then the new amount you will have as a divorcee moving forward.
Another factor to consider is re-evaluating your retirement goal. “how much money do you need for retirement?” Considering you are just one person now instead of a couple, this should be less than your previous goal when you were married. Here is a great retirement/budget calculator that may help you determine how much you will need for your retirement: https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner
The key to this whole process is to not get overwhelmed. Many people start panicking when they realize that their current income does not allow them to reach their retirement goals. The key is to start small – put away whatever you can now. As you progress in your career or maybe find an additional job or whatever the case may be, it is all feasible – you just need to have the plan together to know what your needs are in order for you to take the steps to make it happen.
Brian Demidovich primarily focuses in Raleigh family mediation and the other Raleigh lawyers at The Law Corner can help you with a fast and simple no-fault or uncontested divorce. However, we are also there to represent you in the most difficult divorce situations too. With experience in and out of the courtroom, we can help you with your divorce — no matter what.
As you may know, in North Carolina, almost all divorce cases require you to live separately for a total of one year. For more information, The Law Corner divorce attorneys in Raleigh can help explain the divorce process to you and help you with other divorce related issues, to include, but not limited to, the following:
Qualified Domestic Relations Order (QDRO)
The Law Corner Attorneys help people all over Wake County to include the following areas: Knightdale, Wake Forest, Raleigh, Morrisville, Apex, Wendell, Zebulon, New Hope, Cary, Rolesville, Fuquay-Varina, Holly Springs, and Garner.