Divorce is a major financial transaction that can define your financial stability for years to come. That’s why it’s so important to have a solid legal strategy in place when you enter the property division process and consider whether spousal support is warranted. While you should be able to secure your fair share of the marital estate in your divorce, nothing is guaranteed, and you have some flexibility to try to settle important financial matters with your spouse through negotiations. This can be especially important when you’re dealing with significant retirement assets.
After all, over time your retirement accounts can balloon, making them your most valuable asset. And when you divorce, you may not have as much time as you think to replenish any retirement assets that you lose to your spouse. This could leave you wondering, then, what you can do to protect your retirement assets and the future of your financial stability.
How can you shield your retirement assets during divorce?
If your divorce heads to trial, then it’s almost inevitable that your spouse will seek a share of your retirement assets, and the court very well may grant that request. So, your best bet for protecting your retirement accounts is to negotiate resolution with your spouse, doing so in a collaborative fashion if at all possible. Here are a few tips to try to find an outcome that’s fair and favorable:
- Identify what it is that your spouse truly wants: There are probably certain assets that your spouse wants out of your divorce. Even if there aren’t, they’re still looking for some semblance of financial stability post-divorce. If you can identify what it is that they truly want out of the process, then you can develop a negotiation strategy that helps them attain their goals while still protecting your retirement accounts as much as possible.
- Use leverage: In an ideal world, divorce settlement negotiations would be calm and peaceful with both sides walking away with exactly what they want. But you can’t, and shouldn’t, bank on that happening. In fact, you should look for advantages that you can leverage during negotiations to secure an outcome that you want. Don’t get us wrong. You don’t want to be overly contentious or nasty during your settlement negotiations, but if you have evidence of marital bad acts, for example, then your spouse may be willing to work with you to protect your retirement assets in exchange for foregoing litigation and brining that information into the public realm.
- Offer alternatives: While your marital assets have to be divided in an equally under California law, you have flexibility to deviate from that standard. For example, if you’re not attached to the marital residence, then you might want to offer that up in exchange for keeping a larger portion of your retirement accounts. Try to think creatively here so that you can find an outcome that’s right for you.
Develop a divorce legal strategy that puts your interests first
There are several ways to approach divorce. You have to find and develop the legal strategy that works best for you and effectively helps you obtain your goals. This requires knowledge of the law and a command of the facts as well as a willingness to advocate on your own behalf. That said, a collaborative divorce can be a great way to find amicable resolution that’s fair and favorable. That’s a lot to put on your plate as you try to navigate the emotional complexities of your divorce, which is why many individuals who are similarly situation choose to work closely with their attorney to ensure they’re making the legal decisions that are best for them.