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Divorce can have impact on retirement planning

Going through a marital dissolution can be emotionally tumultuous, but it can also be a financial roller coaster in Montana. This is especially the case for those eyeing retirement in the near future. The divorce process has a huge effect on all aspects of retirement planning, but it is still possible for people to keep their retirement plans on track following divorce.

First, it is critical for people to take stock of where they are moneywise after they get divorced. For instance, they might have assets in pension plans or IRAs. Understanding the kinds of assets with which they are working is an important step toward re-establishing one's financial footing.

It is also essential to figure out the shortfall that exists between one's ultimate retirement goal and one's current savings rate. Running these numbers may lead a person to some different conclusions according to his or her particular situation. For instance, the individual may decide he or she needs to reduce his or her personal spending or even work longer before retiring.

Making poor financial decisions during and after divorce in Montana can have a negative long-term impact on one's prospect of retirement. However, appropriate legal guidance may help a divorcing individual to push for a divorce settlement that is personally favorable considering the circumstances. If two people getting divorced are unable to see eye to eye on matters such as asset division, a judge will have to make decisions for them concerning these issues, and the outcome might not be in either one or both of their best interests.

Source: yahoo.com, "4 Tips for Retooling Your Retirement Plan After Divorce", Rebecca Lake, Nov. 8, 2016

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