Most Kiwis are unaware of the effects of divorce on their retirement savings, based on a survey of 1,000 people.
Whether you live in Auckland or Wellington, lawyers can help you determine the impact of divorce on your KiwiSaver. The survey showed that only one out of four knew that the money could be divided between the parties as part of their dissolved marriage.
Impact of Divorce
You may think that just because KiwiSavers are solely under your name, they will not be subject to the separation of assets and liabilities between you and your ex-spouse. However, there are cases when this becomes part of a divorce settlement or legal separation.
That said, it is important to know early on how you could protect your retirement fund from unexpected circumstances. These include death and major financial setbacks. When a person dies, the money from their KiwiSaver will go towards their estate, which means drafting a will, would be necessary to legalise the recipient of funds. Those who wish to avoid the possibility of a divorce should be aware of some red flags.
Some marriage experts believe that spending too much time with your spouse during the holidays would do more harm than good. An analysis showed that there are underlying factors that either worsen a fragile marriage or begin to complicate matters between two people.
For instance, it is no secret that dealing with difficult in-laws often becomes the main reason for a divorce. This explains why divorce inquiries increase in the months after Christmas, as most people would rather keep up a happy appearance for the sake of the holiday spirit.
Legal advice should be your priority even if you already know the ropes about handling your retirement fund after divorce. When choosing a divorce attorney, it may be wiser to consult with a law firm that specialises in different types of family law cases.