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3 Tips For First Horizon Employees When Managing Grey Divorce

Healthcare Provider Update: First Horizon offers health, dental, and vision insurance tailored to individual and family needs. Employees benefit from HSAs, FSAs, disability coverage, and parental leave. The company provides a 401(k) with up to 6% matching, adoption reimbursement, and wellness programs. Additional perks include tuition reimbursement, mentoring, and digital wellness platforms3. First Horizon With ACA premiums projected to rise sharply, First Horizons employer-sponsored plans and financial wellness tools help employees avoid the volatility of marketplace costs. Their matched savings and flexible spending options provide a buffer against rising healthcare expenses. Click here to learn more

Strategy for First Horizon employees to navigate the complexities of gray divorce is to manage their substantial marital assets and secure their financial future,' says Paul Bergeron, on behalf of The Retirement Group, a division of Wealth Enhancement Group.

'This paper finds that gray divorce poses unique financial planning challenges for the First Horizon employees who often have complex assets and liabilities to manage,' says Kevin Landis from The Retirement Group, a division of Wealth Enhancement Group.

1. The article describes the rising incidence of gray divorce and its implications for the financial status of families.

2. Financial and Legal Issues: It outlines the issues including the division of property and debt for older couples and the special issues that affect the First Horizon employees.

3. Management of Gray Divorce: It describes how to manage gray divorce the right way, through listing assets and liabilities, speaking to professionals, and out of court settlement.

The term ‘gray divorce revolution’ has been used to describe a heightened rate of divorces among individuals above 50, who have nearly quadrupled since 1990. This trend is affecting families a great deal, especially from the financial perspective. This article looks at the consequences of gray divorce from the financial standpoint and the strategies that are vital for every First Horizon employee when it comes to such transitions.

Financial and Legal Considerations

Divorcing later in life comes with a slew of legal and financial implications that are far more nuanced than those experienced by younger couples. Older couples have the difficulty of dividing multiple assets built over years or even decades of marriage. The majority of U.S. states use equitable distribution, which means that the property is divided equitably but not always equally. It is important for First Horizon employees to realize that what is fair is not always black and white and depends on the situation.

The divorce process can be quite expensive and the main costs are usually associated with legal fees, especially if the case goes to court. Other costs such as fees for filing and court charges as well as appraisal fees can add up quickly, it is important to be financially prepared.

Asset and Debt Division

Take, for instance, John and Maureen who have both added to their marital assets through employment and at one time owned a business together. It often happens that one of the spouses has quit the job to look after children and therefore the contribution to the assets will not be the same for the two individuals during the division of assets.

Debt division can also pose challenges. Issues regarding who keeps the family home and who takes the mortgage on it can result in financial problems, particularly if the mortgage is being refinanced under not as good conditions as the initial mortgage.

Financial Implications Post-Divorce

The effects of gray divorce are not only limited to the costs of legal processes and property division. Since the single people have to pay for the utilities and maintenance of their homes on their own after the divorce, they end up paying more per person for the services, which may result in a decrease in their quality of life. This situation can be especially difficult for First Horizon employees who may also have reduced potential for income and the difficulty of returning to the dating scene in later life.

Strategies for Managing a Gray Divorce

All First Horizon employees who are planning on getting a gray divorce should do so with a plan in mind:

Assessment of Assets and Liabilities: First, it is advisable to make a list of all the assets and debts acquired during the marriage. This is because it is important to have this financial report in order to know how to prepare for the negotiations and how to divide the assets and properties between the two parties equally.

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Consultation with Professionals: You should meet with divorce attorneys in order to determine the likely outcomes of your case given your circumstances and the law. Many attorneys offer free initial meetings, which can give you an idea of the attorney’s skills and suitability for your case. Also, you should seek the counsel of financial advisors who are familiar with divorce to assist in rearranging your finances to suit the single lifestyle and predict future financial consequences.

ADR (Alternative Dispute Resolution) and Mediation: See if you can avoid litigation through mediation. Mediation is the process of solving problems with the help of a third party and often leads to a faster and easier solution, which is particularly helpful when the issues at hand are complicated by the emotions and history that are often entangled in such cases.

Conclusion

This paper aims to highlight that a gray divorce is a complex process that requires a consideration of financial, legal, and personal issues. To understand the basics of the assets and debts division, what costs to expect for living separately, and what professional advice to seek, so that First Horizon employees can reduce the impact of the financial shock and navigate the change better.

Also, due to the fact that retirement benefits like pensions and 401(k) plans are involved in divorce, it is important to get updated valuation and legal advice to reach a fair and reasonable settlement.

References:

1. Duderstadt, Chris. 'Gray Divorce and Its Financial Impact.' Modern Wealth Management, 15 Nov. 2024, www.modwm.com. Accessed 2 Feb. 2025.

2. 'The Financial Challenges of Gray Divorce: Protecting Your Golden Years.' AMG National Trust, www.amgnational.com. Accessed 2 Feb. 2025.

3. Stewart, Jackie. 'The Role Employers Play in Gray Divorce.' Employee Benefit News, 31 Oct. 2024, www.benefitnews.com. Accessed 2 Feb. 2025.

4. 'What is 'Gray Divorce' and Its Impact on Your Retirement and Financial Security?' Advisor Check, www.advisorcheck.com. Accessed 2 Feb. 2025.

5. Brown, Susan, and I-Fen Lin. 'The Economic Consequences of Gray Divorce for Women and Men.' Journals of Gerontology, academic.oup.com. Accessed 2 Feb. 2025.

What type of retirement savings plan does First Horizon offer to its employees?

First Horizon offers a 401(k) retirement savings plan to help employees save for their future.

Does First Horizon provide matching contributions to the 401(k) plan?

Yes, First Horizon provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the eligibility requirement to participate in First Horizon's 401(k) plan?

Employees at First Horizon are eligible to participate in the 401(k) plan after completing a specific period of service, typically within the first year of employment.

How can employees at First Horizon enroll in the 401(k) plan?

Employees can enroll in First Horizon's 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What investment options are available in First Horizon's 401(k) plan?

First Horizon offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.

Can employees at First Horizon take loans against their 401(k) balance?

Yes, First Horizon allows employees to take loans against their 401(k) balance under certain conditions, as outlined in the plan documents.

What is the vesting schedule for First Horizon's 401(k) matching contributions?

The vesting schedule for First Horizon's matching contributions typically follows a graded schedule, which means employees earn ownership of the match over a period of time.

Are there any fees associated with First Horizon's 401(k) plan?

Yes, there may be administrative fees associated with First Horizon's 401(k) plan, which are disclosed in the plan documents.

How often can employees at First Horizon change their 401(k) contribution amount?

Employees at First Horizon can change their 401(k) contribution amount at any time, subject to the plan's guidelines.

What is the maximum contribution limit for First Horizon's 401(k) plan?

The maximum contribution limit for First Horizon's 401(k) plan is set by the IRS and may change annually; employees should refer to the latest IRS guidelines for specifics.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

First Horizon National Corporation offers both a pension plan and a 401(k) plan to its employees. The First Horizon National Corporation Pension Plan is a defined benefit corporate pension fund that was established in 1946. This pension plan provides retirement, death, and disability benefits to eligible employees and their beneficiaries. The assets of the pension plan are managed by the Pension, Savings, and Flexible Compensation Committee, with First Tennessee Bank National Association serving as the trustee (PitchBook). In addition to the pension plan, First Horizon provides a 401(k) plan where employees can save for retirement with contributions matched by the company up to 6% of their pre-tax income. The 401(k) plan also includes various savings and money management tools, such as Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA), which allow employees to set aside pre-tax income for healthcare and dependent care expenses

Restructuring and Layoffs: In early 2024, First Horizon announced a significant restructuring plan aimed at streamlining operations and reducing costs. The bank plans to cut approximately 5% of its workforce over the next year as part of this initiative. This move is in response to increasing operational expenses and the need to enhance efficiency in a challenging economic environment. This news is particularly relevant as it reflects broader trends in the banking sector where institutions are adjusting their workforces to remain competitive amidst economic uncertainty.

First Horizon Corporation (FHN) provides a comprehensive employee stock option and Restricted Stock Unit (RSU) program aimed at retaining top talent and incentivizing long-term performance. First Horizon offers both stock options and RSUs to eligible employees, primarily those in executive or senior management roles. These awards generally vest over a period of three to five years, with specific performance metrics tied to company performance and stock price. Employees who meet certain job levels and performance criteria are eligible to participate in these equity compensation plans. In 2022, First Horizon offered RSUs that vest annually, providing employees with ownership stakes in the company. By 2023 and 2024, the bank continued this program with slight adjustments, including expanded eligibility and adjusted performance criteria (

First Horizon Health Benefits Overview Company Website: The official First Horizon website provides the most direct and accurate information. Glassdoor: This site often has employee reviews and details about health benefits, including recent changes or feedback from employees. Indeed: Similar to Glassdoor, Indeed might have employee reviews and specific information about health benefits and any recent updates. LinkedIn: Sometimes companies post updates about employee benefits or changes in health-related policies here. Benefits.gov: This site provides general information about employee benefits and might have relevant details or changes affecting First Horizon.