Phone: 301-738-7770
Steven J. Gaba
Phone: 301-738-7770

Considering forms of wealth during a divorce

It is often very difficult for people who are going through a divorce to think about how their finances are going to be affected. Some people might be worried about moving down to one income and still being able to afford the lifestyle they are accustomed to. While these are valid concerns, divorce is a time when you should take a few moments to take stock of the wealth that you have as you start your new life.

Some assets, such as unvested pensions are important when you are going through a divorce. You might not have worked the minimum number of years yet to have them vest, but they can still be valuable in the future.

Your Social Security retirement is another asset that you should consider because this can help you when it is time for you to retire. People often overlook this because it isn't time for them to claim the retirement pay yet; however, you would be surprised at how much of an impact these monthly checks can have on your life when you reach the appropriate age.

Employer benefits are another thing to consider. These can sometimes include perks like health insurance, disability insurance and profit sharing. Counting these as assets might not come immediately to mind; however, self-employed people would have to pay for these so you could think about that when you are factoring up your new financial situation.

Of course, there are some instances in which these benefits might come up as part of the property division process. Thinking carefully about the options for handling these and being upfront about what assets you hold are both crucial during your divorce.

Source: U.S. News, "6 Ways You're Wealthier Than You Realize," Geoff Williams, Jan. 06, 2017

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