Arizona residents know how difficult it is to save for one’s retirement. Recently, a survey was conducted to determine if any differences existed between the retirement savings of married couples as compared to those who went through a divorce. Perhaps not surprisingly, the survey revealed that the typical divorced person had approximately $10,000 less in savings than his or her married counterpart.
Unfortunately, a divorce can wreak havoc on one’s financial stability. The end of a marriage is not only emotionally turbulent, but it can have great financial implications as well. This is particularly true for women. In fact, the Government Accountability Office reports that household income drops by a whopping 41 percent for women following a divorce. The number is also significant for men. Their household income falls by 25 percent. This means that those seeking a divorce in today’s society must pay careful attention to their finances.
It is very important to protect whatever retirement savings one has accumulated during a marriage. These savings can be the key to a stable financial future. A pre-nuptial or post-nuptial agreement is also recommended for anyone who has obtained assets or property prior to the marriage and wants to protect their interest in them, particularly if one is nearing the age of retirement.
The end of a marriage is an emotionally draining time. However, it is important to focus clearly on one’s long-term financial future after a divorce or separation. An experienced family law attorney can help ensure that the best outcome is reached when faced with issues of asset division, division of marital property, division of assets and spousal support.
Source: Money.cnn.com, “Rebuild your nest egg after a divorce,” Beth Braverman, Donna Rosato and Penelope Wang, Feb. 21, 2013