When a couple separates, it is very easy for both parties to focus all their attention on the short term. The end of a divorce proceeding is certainly something to be looked forward to, as many Connecticut residents are aware. However, many experts are saying it is even more important than ever to cast an eye forward to later life when going through a divorce, to ensure the building blocks are in place for a comfortable retirement.
With so-called “grey divorce” on the rise since the 1990s, many divorcees are facing the prospect of a retirement without the benefit of a dual income they may have relied upon previously. Additionally, many couples choose to liquidate their assets — including retirement plans and life insurance — into cash to help ease the transition in the short term. According to many experts, this might be a profoundly bad idea.
Planning for late-life may mean taking a hit in the short term. Residents are urged not to be too sentimental about their physical assets — things that can be easily sold off without compromising future plans — and more attached to the things that really matter. A health insurance policy will go a lot farther than a classic car when retirement age arrives.
In many ways, divorce is a balancing act between what one wants and what one requires. Dividing assets, as many Connecticut residents can attest, is one of the more complicated and challenging parts of any divorce. Understanding the benefits of sensibly dividing up insurance and other later-in-life necessities may mean the difference between a pleasant retirement and a challenging fiscal quandary down the line.
Source: Forbes, Saving Your Retirement From A Divorce, Greg Brown, Oct. 21, 2013