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 Amica Mutual Insurance 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 Amica Mutual Insurance 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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- How Are Workers Impacted by Inflation & Rising Interest Rates?
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We'd like our Amica Mutual Insurance 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 Amica Mutual Insurance employees understanding a few key concepts, they may be able to avoid making costly financial mistakes.
Chart Source: Familyinequality.com, 2019
1. The Wall Street Journal, 2019
What type of retirement plan does Amica Mutual Insurance offer to its employees?
Amica Mutual Insurance offers a 401(k) retirement savings plan to its employees.
Does Amica Mutual Insurance provide a company match for its 401(k) contributions?
Yes, Amica Mutual Insurance provides a company match for employee contributions to the 401(k) plan.
At what age can employees of Amica Mutual Insurance start participating in the 401(k) plan?
Employees of Amica Mutual Insurance can typically start participating in the 401(k) plan as soon as they meet eligibility requirements, usually at age 21.
How can Amica Mutual Insurance employees enroll in the 401(k) plan?
Employees can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
What investment options are available in the Amica Mutual Insurance 401(k) plan?
The Amica Mutual Insurance 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Can employees of Amica Mutual Insurance take loans against their 401(k) savings?
Yes, Amica Mutual Insurance allows employees to take loans against their 401(k) savings under certain conditions.
What is the vesting schedule for the company match at Amica Mutual Insurance?
The vesting schedule for the company match at Amica Mutual Insurance typically follows a graded vesting schedule, which means employees gradually earn ownership of the match over time.
How often can employees of Amica Mutual Insurance change their 401(k) contribution amounts?
Employees of Amica Mutual Insurance can change their 401(k) contribution amounts at any time, subject to plan rules.
What is the maximum contribution limit for the Amica Mutual Insurance 401(k) plan?
The maximum contribution limit for the Amica Mutual Insurance 401(k) plan is set by the IRS and may change annually; employees should check the latest limits for accuracy.
Does Amica Mutual Insurance offer any educational resources regarding the 401(k) plan?
Yes, Amica Mutual Insurance provides educational resources and workshops to help employees understand their 401(k) plan options and investment strategies.
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