When you have complicated assets to divide, like a pension, it’s important to take a moment and consider all of the different things that your decisions today could affect for years to come.
For example, here are some of the questions you need to think about when you consider the division of a pension:
How will you be paid from the pension?
You need to have an idea of not only how much you’ll ultimately receive, but when you’ll receive it. How old will you be? Will you receive a monthly payment or a lump-sum payment — or some combination of both?
All of these are pieces of the picture you have to put together when you’re trying to see your future. You can use the information to start to understand how financially comfortable you’ll ultimately be.
Is there any way to tap into the fund early?
Can the funds be accessible — with or without a tax penalty — if you have an urgent need? Could you access a lump-sum to use as a down payment on a condo or a house?
Knowing the options you have — and any restrictions you face can make it much easier to plan your monthly retirement budget.
How will this change your retirement goals?
What will dividing this pension do to your own retirement date? Will it push it back several years? Is there a way around doing things this way? What other options haven’t been considered?
Ultimately, you need to make certain that you work with an attorney who understands your needs, your goals and can advocate for your interests.