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Texas divorce can take a toll on retirement plans

Wednesday, June 20, 2018

Between 1990 and 2010, the divorce rate for people over 50 has doubled. This means that couples facing a Texas divorce are more likely than ever before to have the separation adversely affect their plans for retirement. It is vital that both members of a separating couple understand their rights and responsibilities in a divorce situation in order to be able to take a step back and reevaluate their late-life plans.

Keeping one eye on retirement is a good policy in a divorce scenario, many experts have agreed. Quite often when liquidating marital assets, the tendency is for people to agree to cash settlements equalling a 50 percent share of the total value of liquidated assets -- and often, this includes retirement and pension plans. However, this can sometimes translate into a bad plan, as the couple in question may be trading short-term security for long-term planning.

It is important, despite the emotional toll divorce can take, to remain as unsentimental as possible, according to some experts. Becoming overly attached to physical assets can be a liability when seeking an equitable distribution of wealth. Those who become sentimental about these sorts of issues are also more likely to overlook more important assets including health and life insurance. Ultimately it is best to keep one's future in mind during the process.

Texas divorce, as many residents can speak to, is never an easy process. However, it is possible to mitigate the potentially adverse financial effects with a little advance planning. Keeping retirement and later-life needs in mind when dealing with a divorce today can help the parties develop a more comprehensive plan for their futures.

Source: Forbes, Saving Your Retirement From A Divorce, Greg Brown, Oct. 21, 2013

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