What are the options to ensure funding your retirement during a San Diego divorce? Gray divorce (where the parties are over the age of 50) has become much more common over the past decade. One of the most common challenges which must be considered in a gray divorce is how to provide adequate retirement for each spouse.
In many of these cases one of the spouses has given up their career to raise children and manage the home. In other cases there is simply a large difference between the income and earning capacity of each spouse. Many people borrow against their retirement accounts to purchase a home or retire high-cost debt. This leaves less in the retirement account to provide for their needs down the road.
There are primarily 4 strategies for funding your retirement during a San Diego divorce when the parties do not have equal financial standing. The first options should be addressed during property division. Marital assets do not have to be divided 50/50, but in a fair manner in the eyes of the Court.
Most retirement accounts were funded with earnings during the course of the marriage. Therefore, these assets are considered to be primarily or exclusively community property, depending upon the date of the marriage, contribution to retirement accounts or qualifying earning years and the date of separation. Many of those considering divorce have not considered the division of pensions, retirement plans and accounts. The Court may set aside a specific balance or a fair division of existing retirement assets to ensure each party has a fair opportunity to secure retirement.
The second option for funding your retirement during a San Diego divorce may be in the division of assets such as the equity in the family home, other investments and property. The Court will consider the retirement needs of both spouses as the division of community property, assets and debts is accomplished. The Court may order a larger share of community property in consideration for a spouse with fewer retirement assets and less earning capacity.
The third path may involve permanent spousal support, especially when one of the spouses has made sacrifices to support the other or worked to support them while they obtained and advance degree or licensure. The Court may consider increasing spousal support to provide additional retirement income.
The Certified Family Law Specialists at Burke & Domercq work with our clients to accomplish their goals and objectives during a divorce. If you are concerned about funding your retirement during a San Diego divorce we invite you to protect your own interests and contact us or call 760-389-3927 to schedule an appointment for a remote or socially distanced consultation with one of our experienced Certified Family Law Specialists.