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Navigating Change: Financial Insights for Divorced Employees of Land O'Lakes

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 Land O'Lakes 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 Land O'Lakes 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 Land O'Lakes 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 Land O'Lakes 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 Land O'Lakes?

The 401(k) plan at Land O'Lakes is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How does Land O'Lakes match employee contributions to the 401(k) plan?

Land O'Lakes offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions up to a certain limit.

What types of investment options are available in the Land O'Lakes 401(k) plan?

The Land O'Lakes 401(k) plan provides a variety of investment options, including mutual funds, target-date funds, and company stock.

Can employees at Land O'Lakes take loans against their 401(k) savings?

Yes, Land O'Lakes allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.

When can employees at Land O'Lakes start contributing to the 401(k) plan?

Employees at Land O'Lakes can start contributing to the 401(k) plan after completing a specified period of employment, typically within the first few months.

What is the vesting schedule for Land O'Lakes' 401(k) matching contributions?

The vesting schedule for Land O'Lakes' 401(k) matching contributions varies, but employees generally become fully vested after a certain number of years of service.

How can employees at Land O'Lakes access their 401(k) account information?

Employees can access their 401(k) account information through the Land O'Lakes employee portal or by contacting the plan administrator.

Are there any fees associated with the Land O'Lakes 401(k) plan?

Yes, the Land O'Lakes 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

What happens to the 401(k) savings if an employee leaves Land O'Lakes?

If an employee leaves Land O'Lakes, they can choose to roll over their 401(k) savings to another retirement account, cash out, or leave the funds in the Land O'Lakes plan if permitted.

Does Land O'Lakes offer financial education resources for employees regarding the 401(k) plan?

Yes, Land O'Lakes provides financial education resources and workshops to help employees understand their 401(k) options and make informed investment decisions.