Many couples throughout Fullerton and Orange County will go through a divorce. There is much to consider at this time, such as how you will divide custody between any children you share and who will get the family house. However, you also need to keep one eye toward the future and consider how this divorce will impact your retirement plans.
Whether you are in your 20s or 50s, you want to think about retirement. You need to plan for how you will pay for living accommodations and other necessities once you no longer work. This may be easier to plan when you have a spouse, but in the aftermath of a divorce, it becomes murkier. Here are some steps to follow to make sure you protect your retirement accounts for the time being.
Understand your Social Security benefits
As long as you were spouses for at least 10 years, you can qualify for benefits under your partner's Social Security plan. Additionally, you can get these benefits as long as you do not remarry. An ex-spouse can receive half of what the other partner receives from his or her Social Security plan. If the other spouse wants to claim benefits before reaching the age of 62, then he or she will end up with a reduced amount. Claiming these benefits, regardless of how old you are when you do so, will not impact how much your ex-spouse receives in the slightest.
Have a proper Qualified Domestic Relations Order
One of the most important things you need to acquire in a divorce is a QDRO. This is vital when the other spouse has an employer-sponsored retirement plan. The only way you will be able to claim benefits from a 401(k) or similar pension plan down the line is if you file a QDRO during the divorce. You need to make sure you write this plan correctly for a court to accept it, which requires getting the right legal assistance.