While navigating divorce, you must also navigate your fears and anxieties about ending a marriage. What do you have to look forward to?
WTOP News explores several monetary advantages that divorce brings. Ending your marriage could do more for your life than you think.
Penalty-free access to retirement funds
Because of your divorce, you may withdraw funds from your retirement account without facing a penalty. To qualify, you and your current spouse must enter a qualified domestic relations order. While this could offer the financial benefit you need for post-divorce life, use it wisely. Remember, you set that money aside for retirement. The more you withdraw now, the less you have when you retire, unless you replenish it.
Greater financial control
Perhaps you and your soon-to-be-ex-partner did not have the same spending and saving habits. No longer must you compromise on budgeting or deciding where to allocate money. Divorce could help you breathe easier about your financial priorities.
Social Security benefits
Divorcing older adults may qualify to file a restricted application for Social Security benefits when retiring. This only applies if you and your current spouse remained married for at least a decade. Even better, your ex need not worry about facing a penalty if you take advantage of this benefit.
Better investments, potentially
Other than spending and saving, you and your ex may have disagreed about your investment strategy. Ending your marriage means being as conservative or aggressive as you wish. This could result in better investments. Of course, that depends on how the market performs.
Your divorce need not end in financial doom and gloom. You could have access to more advantages than you realize.