12 Mar The Best Time to Divorce
When is the Best Time to Divorce?
If divorce is in your future because your marriage has gone south, it can be wise to end it as soon as possible for one reason: your retirement benefits.
If you are contributing to a retirement account in the earlier stages of your career, and plan to continue,you might have upwards of $250,000, $500,000 or even as much as $1,000,000 by the time you retire.
When it is time to retire you will have earned the right to your retirement funds, but if your marriage went down hill and you waited until you were close to or at retirement age before getting a divorce, then you will have more retirement to lose.
Half of the proceeds will go to your spouse in a divorce.
In equitable distribution states like Maryland or Washington, D.C., even if your spouse has a larger retirement account, your retirement, your spouse’s retirement, plus any other assets, income, and debts that the court considers, could greatly reduce your entitlement to your spouse’s retirement. So, you end up with less than you may have thought you would.
On the other hand, if you are close to 10 years of marriage and don’t have assets or alimony to consider losing, you may want to wait to reach the 10-year mark.
After 10 years you can obtain your spousal benefit of social security. There are a lot of variables to consider and it is best to talk to an attorney about your specific circumstances so that you don’t make a decision you will regret later.
A collaborative divorce in lieu of a trial, where the judge decides how to divide marital assets, property, and debts, may be the best way to go.
In a collaborative divorce, you come to an amicable agreement with the help of each of your divorce attorneys.
It is less expensive, not combative, and helps you and your spouse come to a win-win resolution.