California residents who get a divorce should be prepared for the impact that the process can have on their finances, particularly those earmarked for their retirement years. According to the results of a study conducted by the Center for Retirement Research, households that have not experienced a divorce have a net financial wealth that is almost 30 percent more than that of similar households in which a divorce has occurred.
The study also found that individuals who get a divorce have a 5 percent greater chance of depleting their retirement assets. However, this does not apply to single women.
Single women who have gone through a divorce are just as prepared for retirement as single women who have never been married, a characteristic that makes them unique among all other demographics. The reason that the trend of depleted retirement assets seems to not affect them has been attributed to real estate.
After a divorce, women typically have the children, whose welfare can be very expensive to manage. Women are also typically left with the home, and as a result, the means to build up home equity. According to an author of the study, women who opt to use the home equity that accumulates make a substantial positive impact on their financial security for retirement.
It is worth noting that divorcing women have been advised for some time by financial planners to get rid of the home. This is typically done after an evaluation of the woman financial state before and after the divorce.
A divorce attorney may advise clients of the most appropriate legal strategy to obtain favorable settlement terms regarding property division. The attorney may work to protect the rights of clients during negotiations to split retirement plans, pensions, marital property, real estate, offshore financial accounts and other types of financial assets.
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