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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 Meta 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 Meta 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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- 401K, Social Security, Pension – How to Maximize Your Options
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
We'd like our Meta 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 Meta 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 is the 401(k) plan offered by Meta?
Meta offers a 401(k) plan that allows employees to save for retirement by contributing a portion of their salary before taxes.
How does Meta match employee contributions to the 401(k) plan?
Meta provides a matching contribution to the 401(k) plan, typically matching a percentage of the employee's contribution up to a certain limit.
Can employees at Meta choose how their 401(k) contributions are invested?
Yes, employees at Meta can choose from a variety of investment options for their 401(k) contributions, including stocks, bonds, and mutual funds.
What is the eligibility requirement for Meta's 401(k) plan?
Employees at Meta are generally eligible to participate in the 401(k) plan after completing a specified period of employment.
Does Meta offer a Roth 401(k) option?
Yes, Meta offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings.
How often can employees at Meta change their 401(k) contribution amounts?
Employees at Meta can change their 401(k) contribution amounts at any time, subject to the plan's rules.
What happens to my 401(k) plan if I leave Meta?
If you leave Meta, you can choose to roll over your 401(k) balance to another retirement account, leave it in the Meta plan, or cash it out, although cashing out may incur penalties.
Does Meta provide financial education resources for employees regarding their 401(k)?
Yes, Meta provides financial education resources and tools to help employees make informed decisions about their 401(k) savings.
Are there any fees associated with Meta's 401(k) plan?
Yes, there may be administrative fees associated with Meta's 401(k) plan, but these are typically disclosed in the plan documents.
Can employees take loans against their 401(k) balance at Meta?
Yes, Meta allows employees to take loans against their 401(k) balance, subject to specific terms and conditions.