What you should do to protect your assets
With science providing a longer lifespan for most of humanity, there are marriages that have just run their courses, and couples divorcing after looking at those longer lifespans. With half of marriages in America ending in divorce, a 2009 study found that a quarter of those divorcees were of boomer age. And with people who are in their fifties or sixties get into divorce court, then a new dynamic comes into play: protecting your retirement.
As a couple, you planned to retire together, and that meant your money as well. But now, with the possibility of your retirement funds slashed in half (as well as the money spent on the divorce itself), there are things you need to figure out before venturing out on your own.
Planning becomes more important Before your impending divorce, you and your retirement planner discussed the amount you needed to live on for a predetermined amount of time. Now, it's been slashed in half, and you need to come to grips that there are times when you will have to skimp on life's luxuries. You will have to sacrifice buying that boat you always wanted so the interest can compound and, thus, feed you for five-to-ten years.
Be realistic The fact is that you may have to work another five years to make that goal of a comfortable retirement possible. And during those extra years of work, you're going to have to sacrifice to max out your retirement fund.
Watch your investments We just don't mean your stocks and bonds, but your house, too. Ask your retirement firm to alert you if anyone is trying to borrow against any of your assets without your knowledge. If you share property, make sure to ask your lawyer to file a lis pendens, which will inform people trying to buy your property that it's part of a pending divorce settlement.