People getting divorced in Illinois frequently worry about finances and perhaps never so much as when they are on the cusp of retirement. Pensions, investment plans, and savings accounts are the product of many years’ worth of hard work, sacrifice, and painstaking planning. The prospect of dividing assets in a divorce can be devastating. While a divorce attorney cannot guarantee a perfect outcome, having the help of an experienced firm on your side can help you mitigate the financial impact of divorce on your retirement prospects. Here are three questions to ask yourself as you gather your financial information before the divorce.
What Will Your Social Security Benefits Be?
Spouses who have been working their entire lives often have a healthy amount of Social Security waiting for them upon retirement. But for spouses who have worked only a little or not at all, a spouse’s benefits may be the best option. If you have been married for at least 10 years, you may be eligible to receive up to half of your spouse’s benefits. If your ex-spouse plans on collecting based on your work history, your benefits will not be affected.
How Does Your Retirement Plan Work?
Not every retirement plan is created equal. For example, military spouses must have been married for at least 10 years before they can claim a portion of their former spouse’s benefits. Other plans have highly specific rules that detail how benefits can be divided, including complex paperwork that must be filled out and submitted correctly. Other plans, like simple 401(k)s, can be divided using a Qualified Domestic Relations Order (QDRO). Whatever the circumstances around your retirement plan may be, is important to know the specific details before divorce negotiations begin.
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