Moving through the end of a marriage is never a simple or easy process, and many Texas residents feel overwhelmed by all of the decisions that must be made in a relatively brief period of time. For those who are going through a military divorce, planning for the future should be a part of the decision-making process, including planning for retirement. The decisions made during the course of a divorce will have a big impact on the shape of future financial planning, and understanding the pros and cons of various choices can make it easier to choose the best path.
One thing to consider is how military retirement benefits will be divided during the divorce. This is an area where the guidance of a family law attorney is invaluable. It can be hard to forecast the financial status of one’s retirement years, especially when those years are decades away. Having an advisor who can provide as estimate of how various retirement investments will pay out in the future can make it easier to make wise decisions during the divorce process.
Another consideration is whether or not a spouse will be able to claim Social Security spousal benefits. If the marriage lasted for at least 10 years and other requirements are met, then it may be possible to begin claiming Social Security payments based on the employment record of one’s ex. That provides an income stream, while allowing one’s own Social Security benefits to reach their maximum level. Plotted out over the course of one’s anticipated lifespan, this approach can bring in tens of thousands of additional dollars during retirement.
These are just some of the many considerations that must be factored into a military divorce. Making decisions that are in line with one’s current and projected needs is essential to a favorable outcome. That is easier to achieve when a Texas spouse is working with a divorce attorney who is well versed in the specifics of military divorce.
Source: Forbes, “Does Divorce Derail Retirement?“, Larry Light, July 24, 2017