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Navigating Change: Financial Insights for Divorced Employees of American Eagle Outfitters

The latest research suggests that divorce rates in the U.S. have been falling in recent decades. Still, many people face the difficult crossroads that comes when their marriage ends.

Getting a divorce is a painful, emotional process. Don’t be in such a hurry to reach a settlement that you make poor decisions that can have life-long consequences. For any of our American Eagle Outfitters clients who may possibly have to have a divorce, here are a few financial ideas that may help you prepare.

The most important task these American Eagle Outfitters employees can do is to get their finances organized. Identify all your assets and make copies of important financial papers, such as deeds, tax returns, and investment records. When it comes to dividing up your assets, consider mediation as a low-cost alternative to litigation. Most states have equitable-distribution laws that require shared assets to be divided 50/50 anyway. When a divorce becomes contentious, attorney’s fees can accumulate.

From a financial perspective, divorce means taking all the income previously used to run one household and stretching it out over two residences, two utility bills, two grocery lists, etc. There are other hidden costs as well, such as counseling for you or your children. Divorces also may require incurring one-time fees, such as a security deposit on a rental property, moving costs, or increased child-care.

Finally, dividing assets may sound simple but it can be quite complex. The forced sale of a home or investment portfolio may have tax consequences. Potential tax liability also can make two seemingly equal assets have varying net values. Additionally, when pulling apart a portfolio, it makes sense to consider how each asset will suit the prospective recipient in terms of risk tolerance and liquidity.

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We'd like our American Eagle Outfitters clients to remember, the information in this article is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.

During a divorce, many factors are competing for attention. By these American Eagle Outfitters employees understanding a few key concepts, they may be able to avoid making costly financial mistakes.

Average Interest Rate

Chart Source: Familyinequality.com, 2019

1. The Wall Street Journal, 2019

What type of retirement savings plan does American Eagle Outfitters offer to its employees?

American Eagle Outfitters offers a 401(k) retirement savings plan to help employees save for their future.

Is participation in the 401(k) plan at American Eagle Outfitters mandatory?

Participation in the 401(k) plan at American Eagle Outfitters is voluntary; employees can choose to enroll or opt out.

What are the eligibility requirements for the 401(k) plan at American Eagle Outfitters?

Employees of American Eagle Outfitters are typically eligible to participate in the 401(k) plan after completing a certain period of service, which is outlined in the employee handbook.

Does American Eagle Outfitters match employee contributions to the 401(k) plan?

Yes, American Eagle Outfitters offers a matching contribution to the 401(k) plan, subject to specific terms and conditions.

How can employees of American Eagle Outfitters enroll in the 401(k) plan?

Employees can enroll in the 401(k) plan at American Eagle Outfitters by completing the necessary enrollment forms through the company’s HR portal.

What investment options are available in the American Eagle Outfitters 401(k) plan?

The American Eagle Outfitters 401(k) plan offers a variety of investment options, including mutual funds and other investment vehicles.

Can employees of American Eagle Outfitters change their contribution percentage to the 401(k) plan?

Yes, employees can change their contribution percentage to the 401(k) plan at any time, subject to the plan's guidelines.

What is the vesting schedule for the 401(k) match at American Eagle Outfitters?

The vesting schedule for the 401(k) match at American Eagle Outfitters typically follows a graded vesting schedule, which is detailed in the employee benefits documentation.

Are there any fees associated with the 401(k) plan at American Eagle Outfitters?

Yes, there may be administrative fees associated with the 401(k) plan at American Eagle Outfitters, which are disclosed in the plan documents.

Can employees take loans against their 401(k) balance at American Eagle Outfitters?

Yes, American Eagle Outfitters allows employees to take loans against their 401(k) balance, subject to specific terms and conditions.

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For more information you can reach the plan administrator for American Eagle Outfitters at 77 Hot Metal Street Pittsburgh, PA 15203; or by calling them at (412) 432-3300.