/General/General%2013.png?width=1280&height=853&name=General%2013.png)
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 State Farm Insurance 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 State Farm Insurance 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.
Articles you may find interesting:
- 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!
- 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 State Farm Insurance 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 State Farm Insurance 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 type of retirement savings plan does State Farm Insurance offer to its employees?
State Farm Insurance offers a 401(k) retirement savings plan to help employees save for their future.
How can employees of State Farm Insurance enroll in the 401(k) plan?
Employees can enroll in the State Farm Insurance 401(k) plan through the company’s HR portal or by contacting their HR representative for assistance.
Does State Farm Insurance match employee contributions to the 401(k) plan?
Yes, State Farm Insurance provides a matching contribution to employees' 401(k) plans, subject to certain terms and conditions.
What is the maximum contribution limit for the 401(k) plan at State Farm Insurance?
The maximum contribution limit for the State Farm Insurance 401(k) plan aligns with IRS guidelines, which may change annually.
Are there any fees associated with the 401(k) plan at State Farm Insurance?
Yes, State Farm Insurance may charge administrative fees for managing the 401(k) plan, which are disclosed in the plan documents.
Can employees of State Farm Insurance take loans against their 401(k) savings?
Yes, State Farm Insurance allows employees to take loans against their 401(k) savings, subject to specific terms outlined in the plan.
What investment options are available in the State Farm Insurance 401(k) plan?
The State Farm Insurance 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, to suit different risk tolerances.
How often can employees change their contribution rate to the State Farm Insurance 401(k) plan?
Employees can change their contribution rate to the State Farm Insurance 401(k) plan at any time, subject to plan rules.
Is there a vesting schedule for the employer match in the State Farm Insurance 401(k) plan?
Yes, State Farm Insurance has a vesting schedule for employer matching contributions, which determines when employees fully own those funds.
Can employees of State Farm Insurance access their 401(k) funds before retirement?
Employees can access their 401(k) funds before retirement under certain circumstances, such as financial hardship or after reaching a specific age.
-2.png?width=300&height=200&name=office-builing-main-lobby%20(52)-2.png)
.webp?width=300&height=200&name=office-builing-main-lobby%20(27).webp)
-2.png)
.webp)