Preparing for your future post-divorce in Massachusetts may appear daunting at first thought. The sooner you begin making preparations for living independently, the better off you will be.
One area of your finances that will require extra attention is your retirement. Depending on the length of your marriage and the amount of accrued assets, your current retirement benefits may look quite different once you receive the final divorce decree.
Protecting your savings
One of the biggest mistakes you can make during your divorce is to withdraw, move or hide funds or assets. While these decisions may hurt your reputation and the trust people have in you, they may also prevent you from getting as good of an outcome and even result in legal consequences. While you should protect your savings the best you can, your efforts should follow legal guidelines.
According to The Motley Fool, the biggest issue you may encounter when splitting retirement assets is dealing with costly taxes and fees. However, there are strategies to legally separate notable marital assets without destroying the bulk of their worth. Never, under any circumstance, should you consider tapping into your retirement savings to foot the costs associated with your divorce. Retaining and maintaining as much of your retirement benefits as possible is your number one goal.
Rebuilding your savings
Accumulating additional savings may take time and some trial and error to figure out what works for you. Depending on the circumstances of your marriage and work life, your Social Security entitlement may remain intact. You should also create a budget for yourself and begin making consistent efforts to rebuild your credit and contribute some money to a personal bank account. Investing your savings or finding alternative ways to build compound interest are excellent ways to optimize the income you have.
If you would like to learn more about the process of splitting marital assets, please visit our webpage.