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Navigating Change: Financial Insights for Divorced Employees of Sally Beauty Holdings

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 Sally Beauty Holdings 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 Sally Beauty Holdings 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 Sally Beauty Holdings 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 Sally Beauty Holdings 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 Sally Beauty Holdings?

The 401(k) plan offered by Sally Beauty Holdings is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.

How can employees of Sally Beauty Holdings enroll in the 401(k) plan?

Employees of Sally Beauty Holdings can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

Does Sally Beauty Holdings offer a company match for the 401(k) contributions?

Yes, Sally Beauty Holdings offers a company match for employee contributions to the 401(k) plan, which helps employees save more for retirement.

What is the maximum contribution limit for the 401(k) plan at Sally Beauty Holdings?

The maximum contribution limit for the 401(k) plan at Sally Beauty Holdings is in accordance with IRS guidelines, which can change annually.

Can employees of Sally Beauty Holdings take loans against their 401(k) savings?

Yes, employees of Sally Beauty Holdings may have the option to take loans against their 401(k) savings, subject to certain terms and conditions.

What investment options are available in the Sally Beauty Holdings 401(k) plan?

The Sally Beauty Holdings 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees change their contribution amounts to the Sally Beauty Holdings 401(k) plan?

Employees of Sally Beauty Holdings can change their contribution amounts to the 401(k) plan at any time, subject to the plan’s guidelines.

What happens to the 401(k) savings if an employee leaves Sally Beauty Holdings?

If an employee leaves Sally Beauty Holdings, they can roll over their 401(k) savings into another retirement account, cash out, or leave the funds in the plan if allowed.

Is there a vesting schedule for the company match in the Sally Beauty Holdings 401(k) plan?

Yes, there is a vesting schedule for the company match in the Sally Beauty Holdings 401(k) plan, which determines when employees fully own the matched contributions.

How can employees of Sally Beauty Holdings check their 401(k) account balance?

Employees of Sally Beauty Holdings can check their 401(k) account balance by logging into the plan’s online portal or by contacting the plan administrator.