Many young couples don’t put much value on the retirement accounts and savings that are divided in divorce. For many in their 20s and 30s, items like houses and vehicles are seen as more important than the IRAs and 401k accounts.
However, these accounts are significantly more important than many people understand. In many ways they form the foundational bedrock for long-term financial success, and it is difficult for people to recover what is lost when they let these accounts go in divorce.
Why Don’t People Take These Accounts as Seriously as They Should?
According to an article from the Ledger, millennials consider their youth as an advantage in this regard. They often feel like these accounts are only going to be realized a long way in the future, so they think they have plenty of time to make up that value.
But according to financial adviser Rosemary Frank, “That’s a big mistake. They need to value those retirement assets more in their minds. The best thing you’ve got on your side with retirement assets is time.”
Protect Your Interests
This article illustrates well how important it is to work with a knowledgeable attorney when facing divorce at any age. There are many factors that people will not think of if they haven’t been through the process previously.
When going through the division of assets negotiations in your divorce, make sure you take time beforehand to get not only accurate values but also your own value of the various assets involved. And when looking at 401k and other retirement or investment assets, consider the long-term value, including interest.
Although you are young and you do have time to recover financially from a divorce, the money you and your spouse have earned can be a strong platform for building your portfolio long-term, a platform that should not be abandoned lightly.