Nearly everyone who gets married hopes for the best, but California divorce courts of California are filled with people who never planned to be there. Unfortunately, the high rate is a statistical fact, and an appreciable number of people who get married are going to see their unions come to an end at some point. It is a depressing reality, and those who feel themselves capable of facing such harsh emotional truths might be wise to prepare for the possibility when making financial plans for their retirement.
Authorities on the subject advise on walking a fine line between preparing for the worst and dwelling on unpleasant things. It should not be overlooked that in many divorces there is one partner who ends up with a substantially smaller share than the other. This may be especially common when the finances of the couple are entangled in complex assets such as retirement accounts and business investments.
Solving this problem can be as simple as maintaining two retirement accounts instead of one. Making emergency plans for a possible separation long in advance can help to alleviate the fear that comes from financial insecurity, and without the weight of this fear there is a possibility that the relationship may benefit in general. This level of security can also provide benefits to both parties in the event that a separation occurs, encouraging feelings of cooperativeness.
The division of retirement plans can be complex, and in most cases a qualified domestic relations order will be required. A person who is facing the end of a marriage where such assets are present may want to have the assistance of an attorney to help ensure that all required matters are appropriately addressed.
Source: 12 News, “Figuring divorce into your financial plans fatalistic but smart”, Peter Dunn, June 25, 2016
