Divorce is a stressful process, and sometimes, a person may be tempted to allow his or her temporary emotions to drive decision-making. However, temporary emotions are rarely indicative of what is actually beneficial for the future, and Pennsylvania readers facing the prospect of divorce would be wise to think about their long-term interests. This is particularly important when negotiating property division settlements and addressing retirement accounts.
The end of a marriage will undoubtedly bring significant financial changes for both parties. These changes will be immediately evident, but they can also affect long-term financial stability as well. Divorce does not have to completely ruin a person’s retirement plans, but it takes careful planning and thoughtful consideration when navigating property division discussions.
One way a person can protect his or her long-term financial interests in divorce is to know what is community property and what is separate property. It is beneficial to do a full inventory and valuation of both types of property, as separate property is not eligible for division in a divorce. Another way to minimize future effects of a divorce is to downsize and sell the family home. This reduces financial obligations and allows a Pennsylvania resident to save more for retirement.
Finally, it may be necessary to make adjustments in lifestyle and expectations, at least temporarily. These efforts can help a person adjust to the financial impact of a divorce, as well as set aside money for future savings. With thoughtful pursuit of a fair and beneficial property division order, a strong retirement post-divorce is possible.