Divorce impacts the function of retirement because courts often negotiate plans to allow both parties to access some of the benefits. For couples in Indiana, their decision to divorce will require an immediate assessment of their finances so they can rebuild their retirement funds.
Military families face a unique set of circumstances, especially for those with sizeable military benefits. Families that understand the process of splitting benefits earned through military service may better prepare for the outcome of negotiations.
Financial savings after divorce
According to USAA, divorce may affect a couple’s finances in different ways. Shared financial assets require division and negotiations may require one or more parties to contribute funds toward alimony or child support. Some benefits lack eligibility for refinancing. Retirement funds from corporate pensions to specific military benefits require an assessment to determine a fair outcome for both spouses.
Regardless of how a couple’s divorce impacts their finances, their vigilance in rebuilding their independence and strengthening their credit may provide support and confidence as they rebuild their future. Individuals with a clear vision of their desires for their future, as well as an understanding of foundational principles for saving money, may more effectively acquire financial security at a faster rate.
Timing influences outcomes
The length of a couple’s marriage and the number of years of military service are often the biggest influences affecting the division of military benefits according to Military.com. The division of income, pension plans, base benefits, thrift savings plans and survivor benefits plans vary depending on the duration of a couple’s marriage and if their relationship coincided with consecutive years of military service. Determining the percentage of marital share each spouse gets if one or more parties is still active duty will look different, but is also influenced by the length of the marriage.