Securing adequate funds for retirement is a major priority for older individuals who are going through divorce. In fact, retirement funds usually comprise a large portion of the assets to be distributed during the divorce process. Here are a couple of tips for preparing for retirement following the dissolution of a marriage in Illinois.
Social Security and asset division
When it comes to receiving Social Security payments, divorced individuals might be able to claim Social Security based on their exes’ earnings records. To do this, they must have been married to their exes for at least 10 years. In addition, they must not be remarried. Their exes must also be eligible to receive Social Security. However, a divorcing individual may be better off collecting Social Security based on his or her own record instead, if the resulting benefits would be higher than that received by collecting on his or her ex’s record.
In addition to considering Social Security during retirement, divorcing parties should ideally pursue cash assets over real estate — for example, during the division of property. Cash, a liquid asset, is immediately available and can therefore come in handy during financial transitions. Meanwhile, real property requires both transaction costs and time to sell.
Having the right support during this challenging time
Before embarking on the divorce process, older individuals would be wise to speak with an attorney as soon as possible. An attorney in Illinois can help a divorcing party to determine how best to approach property and debt division, as well as spousal support. One’s attorney will ultimately push for a just and comprehensive outcome on behalf of his or her client.