When divorce comes late in life, it can have a big impact on some things that you generally don’t even think about when talking about typical divorce cases. A big example of this is retirement. You may be near retirement age and you may think that you have a financial plan in place, but is a divorce going to ruin that?
Say, for instance, that your spouse gets a pension. That makes up the bulk of your money for retirement. They won’t actually get that pension for a few more years, but knowing that it exists has helped you plan for how much you need to save.
Now that you’re getting a divorce, you can split your retirement savings, but that doesn’t actually put you in the same financial position. You’re going to lose that pension, along with half of your savings. Does that make retirement impossible?
If you’re worried about it, just make sure you know what legal options you have. You may be able to set yourself up for a successful retirement anyway. One way to do this, for example, is through the use of a QDRO (Qualified Domestic Relations Order). It can be used to divide that pension. When your ex starts getting the benefits, a portion goes to you so that you can also retire.
Now, you may still not get as much as you would have received if you stayed married since the length of the marriage helps determine the percentage that goes to you, but it can help tremendously. Knowing the ropes, in a legal sense, can help you protect the retirement plans you’ve made.