Michigan residents who are going through a divorce may be focused on issues such as child custody and asset division, but they should also take steps to make sure their retirement remains secure. They may wish to hire a financial planner and review their retirement assets because it may be necessary to change investment strategies.
Individuals should also work out a budget that reflects their new financial situation. The expenses of divorced people may rise significantly when they are no longer sharing a household. If they have children or others living in the household, it might be time to discuss where cutbacks can be made to save money.
One solid strategy is to avoid too much reliance on Social Security benefits or plans to draw benefits early. Waiting until one is close to 70 is the best approach, and individuals who were married for more than 10 years and never remarried might also be able to access benefits from their former spouse.
When facing divorce, some individuals may neglect retirement planning in favor of more short-term issues such as who gets the house. Retirement accounts are often a key factor in property division, but individuals might agree to give up their share in exchange for assets that give them more immediate access to cash. Sometimes, people who are going through a divorce also fail to look after their financial best interests due to feelings of guilt about the divorce or even a desire to get through the process as quickly as possible. This can cause problems in terms of their future financial stability, and they may wish to consult an attorney for more guidance on the matter. Family law attorneys may be able to provide advice regarding asset division as well as assisting in mediation or settlement negotiations.