When a marriage ends, it is important to take time to rebuild and heal one’s self. Studies show that rebuilding financially is just as important after a divorce considering that many have to start over building retirement nest eggs. Residents of Wyoming and other states who are divorced run a high risk of not having enough money to see them through their retirement years.
Unlike other assets that are typically owned jointly, dividing individual retirement accounts and pensions after a divorce can be a long and drawn-out process. Splitting IRAs, 401(k)s and pension accounts requires legal documentation, and they can be divided 50-50 or swapped out for other marital assets. No matter how assets are split, both sides will end up with less money to see them through their golden years.
Spouses on the receiving end of retirement accounts face the same hardships and may have even more complications. Some may have been stay-at-home moms during the marriage or may have earned less income. Those beyond retirement age cannot contribute to IRAs or 401(k) accounts without income, and Social Security is not considered earned income. Some are trying to work and live modestly while delaying Social Security until age 70 to reap the benefits of higher monthly payments.
Divorce at any age can affect future financial decisions. It may be in one’s best interest to consult with an experienced divorce attorney. In Wyoming, a lawyer with knowledge of retirement account settlements can provide direction for his or her client to ensure a favorable outcome.