Click the image to watch the video on Savant Wealth Management’s YouTube channel.

Video Transcript:

Few things turn a retirement plan upside down more than a divorce. You may be worried you will have to abandon your retirement plan if your 401(k) is divided in a divorce, and you very well may be right.

Your first step toward solving this problem is to determine how much of the 401(k) balance comes from savings you made prior to marriage and how much you saved while married. It’s possible you may be able to carve out premarital savings from a divorce settlement before you start evaluating the division of assets.

When I help my clients with this issue, my first objective is to help them get organized. We gather a list of all marital assets, how they are titled, and the tax treatment of each asset. From there we build out immediate, short-term, and long-term goals.

Understanding your goals is critical when reviewing assets for a divorce settlement. If preserving your retirement balance is more important to you than having a high savings account balance, you may be able to negotiate other assets in place of your 401(k). It’s all about understanding what you have, and how those assets can support your financial goals. That can be hard to do when you’re in the thick of an emotional divorce process.

That’s why I believe it can be so beneficial to work with a trusted team of financial professionals. They can help integrate the tax impact and long-term scenario planning of various decisions you make today, that can impact you years into the future.

My name is Libby and I am a financial advisor with Savant Wealth Management. If you’re in the divorce process and looking for guidance, I encourage you to get in touch.

Let’s figure this out together.

Author Elizabeth N. Muldowney Financial Advisor

Libby has been involved in the financial services industry since 2003. She earned a bachelor of arts degree in economics from Rockford University and is a graduate of the Leadership Rockford program through the Rockford Chamber of Commerce.

About Savant Wealth Management

Savant Wealth Management is a leading independent, nationally recognized, fee-only firm serving clients for over 30 years. As a trusted advisor, Savant Wealth Management offers investment management, financial planning, retirement plan and family office services to financially established individuals and institutions. Savant also offers corporate accounting, tax preparation, payroll and consulting through its affiliate, Savant Tax & Consulting.

©2023 Savant Capital, LLC dba Savant Wealth Management. All rights reserved.

Savant Wealth Management (“Savant”) is an SEC registered investment adviser headquartered in Rockford, Illinois. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy, including the investments and/or investment strategies recommended and/or undertaken by Savant, or any non-investment related services, will be profitable, equal any historical performance levels, be suitable for your portfolio or individual situation, or prove successful. Please see our Important Disclosures.