How divorce may impact your long-term financial plans

Divorce has a way of affecting all areas of life. When it comes to your finances, such topics like property division and alimony may have you confused and wondering how your future will look after the dust settles. Here is some information, as well as a few tips, you may find helpful.

Investments and Pennsylvania property distribution

You may have hoped to come away with a profit from a house, land or other valuable assets upon their potential sale. If you work through the division of property with your ex-spouse out of court, you may end up with a fair share of the investment assets. But if the property division is not resolved prior to a trial, it is possible you may end up with a less-than-lucrative share of the assets. It will all depend on the court.

Being that Pennsylvania is an equitable distribution state, the court will approach property distribution in the divorce in terms of fairness and contribution to the assets themselves. Thus, determination for asset ownership and split following a divorce will process on a case-by-case basis.

Protecting your retirement

You may have even counted on some of your investments for retirement. And you may have, for years, planned for retirement with a spouse only to have that plan compromised by the split. In addition to investments, other retirement assets should go into budgeting considerations as you approach a divorce. You do not want to forget about taxes, for example. Some retirement accounts are not pre-taxable. And you will want to take into consideration which of your retirement funds are marital (subject to the division) and which are not.

A season of divorce can come with a lot of unpredictable pitfalls and confusion. But that does not mean you have to be concerned over the future of your assets. There are legal experts and qualified financial advisors who can help you make the right decision.