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Navigating Change: Financial Insights for Divorced Employees of Fortinet

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 Fortinet 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 Fortinet 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 Fortinet 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 Fortinet 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 is the 401(k) plan offered by Fortinet?

Fortinet offers a 401(k) plan that allows employees to save for retirement through pre-tax contributions, which can help reduce taxable income.

Does Fortinet match employee contributions to the 401(k) plan?

Yes, Fortinet provides a matching contribution to employee 401(k) plans, helping to enhance employees' retirement savings.

What is the eligibility requirement for Fortinet's 401(k) plan?

Employees at Fortinet are eligible to participate in the 401(k) plan after completing a specified period of employment, typically within the first few months.

How can employees at Fortinet enroll in the 401(k) plan?

Employees can enroll in Fortinet's 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What types of investment options are available in Fortinet's 401(k) plan?

Fortinet's 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

Can employees at Fortinet take loans against their 401(k) savings?

Yes, Fortinet allows employees to take loans against their 401(k) savings, subject to certain conditions and limits.

What happens to my 401(k) if I leave Fortinet?

If you leave Fortinet, you can either roll over your 401(k) balance into another retirement account or leave it in Fortinet's plan, subject to the plan's rules.

Is there a vesting schedule for Fortinet's 401(k) matching contributions?

Yes, Fortinet has a vesting schedule for matching contributions, which means employees must work for a certain period to fully own the employer match.

How often can employees change their contribution amounts to Fortinet's 401(k) plan?

Employees at Fortinet can typically change their contribution amounts at any time, subject to the plan's specific guidelines.

Are there any fees associated with Fortinet's 401(k) plan?

Yes, Fortinet's 401(k) plan may have administrative fees and investment fees, which are disclosed in the plan documents.