If you are approaching retirement age, you likely spent years planning and saving for this stage of your life. While you probably don’t want to let anything stand in the way of your plans for the golden years, it might not always be possible to predict what your future will hold and some changes in life could leave you with questions about your options.
The end of a marriage is an example of a change that may leave you with concerns about your financial future. There may be a variety of essential factors to consider regarding the role retirement assets might play during your divorce and knowing what to expect from this process may be essential to keeping your plans for retirement in New Jersey on track.
Topics to consider
One of the first factors to address could pertain to whether retirement assets are marital or separate property, as marital assets will likely be subject to property division. A few other examples of topics to consider may include:
- Identifying assets: Identifying and obtaining the proper value of retirement assets could prove essential to knowing what is at stake and creating a strategy that aligns with your future needs.
- Taxes and fees: Addressing the possible tax ramifications involved and topics such as early withdrawal fees could also prove integral to preparing to make informed choices about your options.
- Splitting funds: Dividing retirement assets can be somewhat more complex than splitting other assets and knowing the necessary steps to take could help stave off an undesirable result.
- The options: If you wish to maintain possession of certain retirement assets, you could consider buying out the other party’s interest or relinquishing ownership over other possessions in exchange.
Even if some retirement assets are separate property, if they are mingled with marital wealth or if they increase in value during your marriage, a portion thereof may become marital property in the process.
Evaluating your options
Even if retirement assets will play a role at the end of your marriage, this does not necessarily have to spell doom for your plans for the golden years of life. Seeking advice in carefully evaluating all your available options could help you prepare a strategy for legal proceedings that focuses on your wishes and preferences for life ahead. Such a decision could help you prepare to seek the most favorable outcome achievable and help shift your focus toward approaching retirement with confidence and serenity.