The Effect Of Divorce On Retirement Planning

There was a potential client I had a meeting with recently. His purpose in meeting with me was for mentorship, of which I gave him my best. We sat down and had a great conversation about money and my financial planning strategy. He said he’d come back with his wife later, but he needed some general questions answered first.

He wanted to know how feasible retirement could be because he had already considered it. I learned everything I needed to know about his job from him. After some fast calculations, things seemed to be looking up. But suddenly, he became confused and asked, “Hope retirement won’t affect my plan to divorce my wife?”

It will undoubtedly be affected!

Unfortunately, it’s a common issue. Some estimates suggest that half of all marriages hit divorce. The figures are much higher if it’s a second or third marriage. Relationships do not always work out, which is an unfortunate reality. Unlike the beginning of a relationship, terminating one can be challenging. There are multiple factors you’ll consider when it comes to divorce. The pension funds are being divided. So many people have several questions about divorce ranging from:

Who is going to get the house?

Will you require more life insurance?

Is it necessary to pay alimony?

Is paying child support necessary?

What does it cost to run a low-income household?

What property will go to whom, and at what price will it be valued?

Who will pay the debts?

Where does the goldfish end up?

… and so forth.

To put it bluntly, divorce will “affect a retirement.” It will aggravate the situation.

Since divorce is more likely to affect women financially, their standard of living may be severely lowered. The majority of them will have to approach the government for help. There will be a reduction in household income (if not a complete loss of income) and damage to credit reports and asset loss. 

There will be new concerns about monthly budgeting, retirement planning, estate planning, and tax preparation following a divorce. 

Divorce is a significant life change that should not be taken lightly. It could have long-term ramifications for both parties. Establishing a team of consultants to help you navigate your financial life following divorce is advisable.

Also, given that finances are a leading cause of divorce, it’s even more critical for couples to be involved in their family’s financial planning from the beginning.

Contact Information:
Email: [email protected]
Phone: 6023128944

Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in the
suburb of Skokie on Chicago’s northwest side and graduated from Niles Township (
East ) high school In 1964. Two years later he joined the US Air Force in November of
1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to
Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He
volunteered for a number of especially dangerous missions on his days off, such as
flying as a door gunner on a US Army helicopter and as a technical assistant on a
psychological operation on an Air Force O-1E observation aircraft. Capping off his
impressive accomplishments was winning the coveted Base Airman of the Month for
March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper
read by every service man stationed in the Pacific theater of operations. After his
Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona
where he met and married his wife, Lequita.
He graduated from Arizona State University in May, 1973, and after a 30-plus year
career as a financial advisor he joined a number of service organizations including
Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the
National Federation of Independent Business and became the longest-serving
chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways
and Means & Senate Finance committees. He then joined Disabled American
Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and
became Chapter 8 Commander in May of 2019 where he served with Distinction for 3
years before being “ termed out”. The next year, as Vice Commander, he won the
title of National Champion Recruiter!