Does a divorce put retirement plans at risk? 

You have big plans for your retirement. Travelling, finally getting started on that reading list and spending your nine-to-five on hobbies rather than your job. 

As the youngest Baby Boomers and older Generation X members near their retirement years, the rate of divorce for those over 50 continues to rise. If you find yourself facing a divorce as you approach the golden years of your life, how can you protect your plans – and your savings – for retirement?

What to know to build your strategy

In a fluctuating economy and in a pending divorce, your worries about your retirement may only grow. However, it is possible to take steps to protect these dreams you have held dear throughout your career. It will help to understand:

• The rules: Going into a divorce, it will be absolutely critical to understand North Carolina’s laws regarding the division of your marital assets. After all, the portion of your retirement savings you gained during your marriage will likely be classified as marital property and divided as such. However, keep in mind that the same applies to your ex-spouse’s retirement funds as well. 
• The state of your finances: Then, you will have to evaluate where your finances and savings currently stand. You can only know how your finances will change after property division – and how to plan for that change – when you know what you have now. 
• Your goals: What will you need to retire according to your current plan? Will you have to readjust the timeline of your goals in your golden years? You want to ensure your savings will support you for years to come after you leave the workforce. You also want to check off that bucket list. Compare and contrast the personal goals and financial goals you have for your retirement, and factor in the changes you expect in order to calculate how you move forward.
• Your options: Proceeding with a divorce does not mean you have to give up on your goals or risk your financial health. You can consult with financial advisors as well as get the knowledgeable guidance you need to secure your assets and the wealth you have built. 

There is no doubt that the process of divorce will have an impact on your future plans. Even so, you have the power to secure your plans for retirement, even if it requires some restructuring and readjustments.