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Navigating Change: Financial Insights for Divorced Employees of Sanderson Farms

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 Sanderson Farms 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 Sanderson Farms 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 Sanderson Farms 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 Sanderson Farms 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 primary purpose of the 401(k) plan offered by Sanderson Farms?

The primary purpose of the 401(k) plan at Sanderson Farms is to help employees save for retirement by providing a tax-advantaged savings option.

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

Yes, Sanderson Farms offers a matching contribution to employee 401(k) accounts, which helps to enhance retirement savings.

What types of contributions can employees make to the Sanderson Farms 401(k) plan?

Employees at Sanderson Farms can make pre-tax contributions, Roth contributions, and possibly after-tax contributions, depending on the plan's provisions.

How can employees enroll in the Sanderson Farms 401(k) plan?

Employees can enroll in the Sanderson Farms 401(k) plan by completing the enrollment process through the company’s HR portal or by speaking with a benefits representative.

What is the vesting schedule for employer contributions in the Sanderson Farms 401(k) plan?

The vesting schedule for employer contributions at Sanderson Farms typically follows a graded vesting schedule, which means employees earn ownership of the contributions over a set period.

Can Sanderson Farms employees take loans against their 401(k) savings?

Yes, Sanderson Farms allows employees to take loans against their 401(k) savings, subject to certain terms and conditions outlined in the plan.

What investment options are available in the Sanderson Farms 401(k) plan?

The Sanderson Farms 401(k) plan offers a range of investment options, including mutual funds, target-date funds, and possibly company stock, allowing employees to diversify their portfolios.

Is there a minimum contribution requirement for the Sanderson Farms 401(k) plan?

Yes, Sanderson Farms may have a minimum contribution requirement for employees participating in the 401(k) plan, which is typically communicated during the enrollment process.

How often can Sanderson Farms employees change their contribution amounts to the 401(k) plan?

Employees at Sanderson Farms can typically change their contribution amounts to the 401(k) plan on a quarterly basis or as specified in the plan guidelines.

What happens to my Sanderson Farms 401(k) if I leave the company?

If you leave Sanderson Farms, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the Sanderson Farms plan if allowed.