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Divorce may affect golden year plans

Dissolving a marriage in Arizona generally has a huge impact on the majority of couples' retirement planning. In fact, the closer a couple is to retirement, the more drastically their plans may end up veering off course. A couple of tips may help those navigating divorce close to their golden years.

First, creating a new household budget right away following divorce is important. After all, one's household income may significantly drop following a marital split-up. In light of this, doing extra things financially -- such as dedicating funds to an existing 401(k) plan -- may end up not being possible anymore. The most important thing is to ensure that one is able to meet all living expenses.

In addition to creating an updated post-divorce budget, planning to work longer may be necessary. Another option is to make adjustments to the kind of lifestyle one can afford to live in retirement. Such adjustments are necessary because, the older spouses are when they decide to divorce, the less time they have to replenish their retirement savings after dividing them during divorce.

Two spouses going through divorce in Arizona may choose to take advantage of divorce mediation or collaborative divorce when addressing their divorce issues. These processes may make it possible for the couple to reach a settlement that is beneficial to both parties so that they can be on the best financial footing possible as they start to lead their separate lives. An attorney can help to ensure that one's wishes and rights are protected during each step of the divorce proceeding.

Source: forbes.com, "Does Divorce Derail Retirement?", Larry Light, July 24, 2017

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