There are few things more complicated than divorce, and if you are someone who is either currently going through the divorce process or you are about to, you most likely have a lot on your mind. The equitable distribution process is complex, and though certain assets, such as homes and vehicles often are at the forefront, you should strongly consider the impact that your divorce may have on your retirement plan, especially if you are currently going through a late-life divorce. Please read on and reach out to our knowledgeable Los Angeles divorce attorneys to learn more about how to protect your retirement plan from a divorce. Here are some of the questions you may have regarding the legal process ahead:
What are the benefits of creating a retirement account in my own name? Can it help protect my retirement plan from a divorce?
Fortunately, in many cases, creating a retirement account in your own name can help protect your retirement from a divorce. Creating your own IRA before your divorce is finalized can help ensure that you won’t have to pay tax on any retirement assets you’ve received from your spouse in a divorce. You can do this through what is known as a qualified domestic relations order.
How do I maximize my Social Security benefits in a divorce?
When older spouses get divorced, they should strongly consider taking legal action to maximize their Social Security benefits. They can do this by waiting to draw from Social Security. Keep in mind that even if you never officially joined the workforce and stayed home to raise children instead, you can still receive Social Security benefits from your spouse’s work history, as long as he or she had a job for at least 10 years. Those born from 1943 to 1954 may receive their full retirement at the age of 66. Those born in 1960 or later may receive full retirement at age 67.
Should I restructure my budget?
Yes. Creating a comprehensive financial plan can go a long way. Unfortunately, many spouses will lose at least some of their assets in a divorce, which is why restructuring your budget is critical in mitigating any loss you may sustain. Ensure you have enough assets to continue paying bills, do not make any risky investments, and consider speaking with an attorney who is knowledgeable in the financial realm as well.
Contact our experienced Los Angeles firm
Divorce and family law issues are notoriously complicated and personal, which is why you must hire an attorney with years of experience, as well as the compassion and skill needed to handle these sensitive matters. For the qualified, dedicated legal representation you and your family deserve and need, contact Zitser Family Law Group, APC today.