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CUNA Mutual Group Employees: Avoid These Costly Financial Mistakes During Divorce

“CUNA Mutual Group employees facing divorce can help safeguard their financial future by prioritizing asset transparency, maintaining sufficient liquidity, and rigorously forecasting post-divorce expenses” – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

“CUNA Mutual Group employees navigating divorce proceedings should engage professional financial guidance early, maintain clear records of all assets, and implement a realistic budget to foster post-divorce stability” – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Common costly mistakes CUNA Mutual Group employees make during divorce
Strategies for maintaining asset transparency and liquidity
How to forecast and manage post-divorce expenses

Even though financial issues are frequently discussed during divorce, many CUNA Mutual Group employees make the same expensive mistakes, which can have long-term, irreparable effects. According to Patrick Ray, Senior Vice President and Financial Advisor at Wealth Enhancement, “advance planning can help people going through divorce mitigate costly mistakes.” Divorce can cause long-term financial harm to both men and women, but women are more at risk when assets and income sources are separated because they typically make less money. ¹

1. Excessive Expenditure on Celebrations and Lifestyle

It is all too typical for one or both ex-spouses to justify extravagant expenditures with a divorce settlement. These impulse purchases—such as buying a new, unaffordable car or going on lavish vacations—can quickly drain settlement funds. The desire to become a homeowner too soon may also be harmful. According to Ray, “it’s very tempting to start over right away, but that may result in buying too quickly, overpaying, or taking on too much debt.” Emotional turmoil often impairs judgment, leading to interest-only mortgages or high down payments that can strain one’s finances.

2. Inability to Locate and Retrieve Hidden Assets

Transparency in finances is essential to reaching a fair settlement. However, some spouses employ pre-divorce strategies to gain an advantage, such as moving money to family members or hiding assets in corporate entities. “Moving assets into businesses or transferring money to friends or family to conceal their value is one of the oldest tricks in the book,” Ray notes. Such tactics are frequently discovered only after completion, when it may be too costly or difficult to recoup hidden monies. It is crucial to hire a forensic accountant or investigator as soon as possible to protect your interests.

3. Letting Emotions Drag Out the Procedure

Attorney fees for protracted litigation fueled by emotional disagreements—over property or custody—can add up fast. “I’ve seen families spend hundreds of thousands of dollars on legal bills just because their feelings took precedence over sound financial judgment,” Ray adds. In addition to depleting the settlement fund, a drawn-out legal struggle makes it more difficult to restart financially. Rather than playing out this turmoil in the courts, Ray suggests seeking help from friends, family, or mental health professionals if emotional support is required to gain greater clarity or perspective.

4. Mishandling Illiquid Assets of the Marriage

Real estate, retirement savings, private equity interests, and restricted stock are examples of assets that need to be handled carefully. Recipients can later find that they are unable to access or sell these holdings without paying large fines or realizing unexpected losses. “Liquidity is critical. In some cases, it makes more sense to exchange illiquid assets for ones you can access and manage immediately,” Ray says. Structured payout provisions—such as regular cash distributions based on asset performance—can help preserve value and ease the transition.

5. Not Accounting for Post-Divorce Costs

It takes more than just cutting costs to transition from a dual-income to a single-income household; it also requires accurate forecasting. The cost of necessities like energy, housing, health insurance premiums, and child-related expenses mostly stays the same or even rises. “Expenses for housing, utilities, health insurance, and raising children don’t simply disappear,” Ray warns. To prevent cash flow problems, he emphasizes creating a thorough budget, conducting monthly expense reviews, and scrutinizing discretionary spending such as entertainment, dining out, and subscriptions.

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Key Data Point:

After a divorce or separation, women over 60 experience a 41% reduction in household income—nearly twice as much as men’s 23%percent drop—according to a Georgetown University Center for Retirement Initiatives analysis released May 19, 2023 (https://cri.georgetown.edu/the-unique-and-varied-challenges-women-face-planning-and-preparing-for-retirement/).

Conclusion

People can navigate divorce with greater financial resilience by recognizing and steering clear of these five pitfalls: overspending, hidden assets, emotional prolonging, illiquid holdings, and underestimated living expenses. In addition to safeguarding settlement funds, early professional guidance, careful budgeting, and strategic negotiating can help pave the way toward a more stable financial future for CUNA Mutual Group team members.

Analogy:

Divorce finances are like navigating a ship through stormy seas: overspending on celebratory luxuries is like being tossed by sudden high waves; hidden assets are submerged reefs waiting to breach your hull; emotional disputes pull you into eddies that stall your progress; illiquid holdings are barnacles slowing your ship’s speed; and underestimating ongoing living expenses is like miscalculating provisions for the voyage. Without clear-eyed budgeting, asset transparency, and strategic course corrections, every misstep could capsize your financial journey.

Sources:

1. Pew Research Center. ' Gender pay gap in U.S. has narrowed slightly over 2 decades ,' by Richard Fry and Caroline Aragao. 4 Mar. 2025.

Other Resources:

1. Locus, Heather. “Five Key Areas Where Divorcing Individuals Make Mistakes.” Forbes, 18 July 2023, https://www.forbes.com/sites/heatherlocus/2023/07/18/five-key-areas-where-divorcing-individuals-make-mistakes/ .

2. Pinto, Aviva. “Financial Pitfalls To Avoid During And After Divorce.” Forbes Councils, 11 Mar. 2025, https://www.forbes.com/councils/forbesfinancecouncil/2025/03/11/financial-pitfalls-to-avoid-during-and-after-divorce/ .

3. Money and Divorce: 6 Financial Mistakes to Avoid. Morgan Stanley, 28 Mar. 2025, https://www.morganstanley.com/articles/divorce-financial-planning-guide .

4. “Older Couples Planning a Divorce Have More Assets to Divide.” AARP, 19 May 2023, https://www.aarp.org/money/personal-finance/financial-impact-of-divorce/ .

5. Gustke, Constance. “Retirement Plans Thrown Into Disarray by a Divorce.” The New York Times, 27 June 2014, https://www.nytimes.com/2014/06/27/your-money/retirement-plans-thrown-into-disarray-by-a-divorce.html .

What are the key differences between defined benefit plans and defined contribution plans offered by CUNA Mutual Group, and how might these differences affect my retirement benefits? As an employee of CUNA Mutual Group, understanding the nuances of defined benefit plans versus defined contribution plans is critical for effective retirement planning. Defined benefit plans typically promise a specific payout at retirement based on factors such as salary history and duration of employment. In contrast, defined contribution plans, like 401(k) plans, depend more on employee contributions and investment performance. Given the volatility in investment returns and changing employment patterns, employees might find themselves at a crossroad between predictable retirement income versus self-directed savings and investment risks. It's vital to explore how these plans could impact long-term financial security at retirement.

A defined benefit plan at CUNA Mutual Group offers predictable retirement payouts, typically based on salary history and years of service, ensuring employees a guaranteed income in retirement. In contrast, defined contribution plans, such as a 401(k), rely heavily on individual contributions and investment performance. Employees may face risks with defined contribution plans due to market volatility but benefit from greater control over their retirement savings. Depending on your financial situation and retirement goals, these differences can impact how secure your future income will be, either through guaranteed payouts or potential growth in investments.

How are pension costs determined in a defined benefit plan at CUNA Mutual Group, and what factors can influence these costs over time? The cost structure of a defined benefit plan at CUNA Mutual Group is predicated on various components, including service costs, interest costs, expected returns on assets, and amortization of gains and losses. Understanding these factors helps in managing potential burden changes on the organization's budget and employees' retirement expectations. For instance, factors such as fluctuating interest rates can significantly alter the present value of future liabilities, affecting the costs that CUNA Mutual Group bears. Employees should be versed in these aspects to contextualize their retirement benefits.

Pension costs at CUNA Mutual Group are influenced by factors such as service cost (new benefit accruals), interest cost (growth on past benefits), expected return on plan assets, and the amortization of gains or losses. Changes in these factors, like fluctuations in interest rates or salary adjustments, can affect the overall cost of the plan. Employees should be aware of how these variables impact their future pension benefits and how changes to the company's funding strategy could alter expectations.

What strategies can CUNA Mutual Group adopt to manage the costs and benefits of its defined benefit plan without drastically impacting employees' retirement security? CUNA Mutual Group faces the challenge of balancing cost management for its defined benefit plan while also ensuring that employees have adequate retirement benefits. Options like freezing benefit accruals, amending contribution formulas, or shifting to defined contribution plans can be explored. However, such strategies must be handled delicately to avoid significant disruptions to employees' retirement planning. Understanding employee concerns and the potential ramifications of these strategies is crucial to formulating a balanced approach.

CUNA Mutual Group can adopt strategies such as freezing benefit accruals, transitioning to cash balance designs, or reducing benefit formulas to manage costs. These strategies may lower expenses but must be carefully balanced to avoid significantly affecting employees' long-term retirement benefits. Clear communication about potential changes and their impact on retirement income is crucial for employees to adjust their retirement planning.

In what ways could regulatory changes influence the CUNA Mutual Group's pension plan design and its offerings to employees after retirement? Regulatory bodies frequently revise guidelines that govern employee benefit plans, potentially impacting how CUNA Mutual Group structures its pension offerings. For instance, changes to tax policies or pension funding requirements could affect administrative decisions regarding contribution levels or payout structures for defined benefit plans. It is imperative for employees to stay apprised of these regulations so they can understand any changes that might occur in their future benefits and what steps CUNA Mutual Group might take to adapt to new compliance needs.

Regulatory changes, such as adjustments in pension funding requirements or tax policies, can have a substantial impact on CUNA Mutual Group’s pension plan design. Changes in laws may require adjustments to benefit levels, contribution structures, or funding strategies. Employees should monitor such regulatory shifts to understand how they could influence future pension payouts and retirement strategies.

Could you explain the process employees at CUNA Mutual Group would need to undertake to access their retirement benefits upon leaving the company? For employees transitioning from CUNA Mutual Group to other ventures, itâ€™s essential to understand the process involved in accessing retirement benefits. This process may involve determining eligibility for pension payouts, selecting between lump-sum distributions or annuitized payments, and understanding how past contribution levels affect final benefits. Employees are encouraged to seek guidance from the HR department or pension plan administrators to navigate this process thoroughly.

When leaving CUNA Mutual Group, employees need to assess their eligibility for pension benefits, choose between lump-sum payouts or annuities, and understand how their years of service and contributions affect the final payout. It's advisable to consult with HR or a plan administrator to navigate the options and ensure that the benefits are accessed appropriately.

What tools and resources does CUNA Mutual Group provide to assist employees in planning for retirement effectively? CUNA Mutual Group offers various resources designed to support employees in their retirement planning journey. These might include access to financial planning tools, informational webinars about defined benefit and contribution options, or one-on-one consultations with benefits specialists. Employees should actively participate in these offerings as a means of optimizing their retirement readiness and ensuring they are leveraging all available benefits to the fullest extent.

CUNA Mutual Group offers several resources for retirement planning, such as access to financial planning tools, retirement webinars, and consultations with benefits specialists. These resources are designed to help employees make informed decisions about their defined benefit and defined contribution options, ensuring they optimize their retirement strategies.

How does the CUNA Mutual Group approach the issue of pension funding, and what implications does this have for current and future employees? The funding strategy for the pension plan at CUNA Mutual Group has significant implications for the benefits that employees can expect. A well-funded pension plan can provide assurance for employees about the stability and security of their retirement income. Conversely, fluctuations in the funding status could lead the organization to consider changes in benefit formulas or contribution strategies. Employees should be aware of how funding levels could affect their future benefits and the overall health of the pension plan.

CUNA Mutual Group’s pension funding strategy is critical to maintaining the stability of retirement benefits. A well-funded plan assures employees of predictable payouts, while underfunded plans may lead to changes in benefit formulas or contributions. Employees should stay informed about the funding status, as it could affect the future security of their pension income.

What should employees at CUNA Mutual Group know about the potential risks and benefits associated with their defined benefit plan? Employees should have a clear understanding of the inherent risks and benefits linked to CUNA Mutual Group's defined benefit plan. While these plans offer predictable retirement income, they are subject to various risks such as underfunding issues, market volatility, and regulatory changes. This understanding equips employees with knowledge about their eventual retirement income and helps them plan strategically alongside their professional developments or transitions within their careers.

Employees need to understand that defined benefit plans at CUNA Mutual Group provide predictable retirement income but come with risks such as underfunding, economic fluctuations, and regulatory changes. By staying informed about these risks, employees can better plan for their financial security in retirement, potentially supplementing their pension with other savings strategies.

What happens to my retirement benefits if CUNA Mutual Group decides to freeze its defined benefit plan? The implications of freezing a defined benefit plan at CUNA Mutual Group would be substantial for employees. Understanding the details surrounding such a freeze, including whether it would impact future accruals or merely limit new benefits for incoming participants, is crucial. Employees should consider consulting HR for comprehensive information regarding their specific situations and how a freeze could influence their expected retirement payouts.

If CUNA Mutual Group freezes its defined benefit plan, employees may no longer accrue new benefits, though they retain previously earned benefits. A freeze could impact future retirement income, particularly for employees nearing retirement, as they could miss out on years of service accruals or salary increases factored into their final benefit calculation.

How can employees contact CUNA Mutual Group to inquire further about their retirement benefits and related services? To learn more about retirement benefits, employees should reach out directly to CUNA Mutual Groupâ€™s HR department or designated pension plan administrators. The organization provides channels such as in-person meetings, phone consultations, and online resources which are specifically structured to assist employees with inquiries related to their retirement benefits and participant obligations. Employees can also explore dedicated web portals for additional information and updates on their pension plans.

Employees can contact CUNA Mutual Group directly through their retirement solutions division at 1-800-356-2644 or visit the website at CUNA Mutual Retirement Solutions for more information about retirement planning services and personalized assistance with their retirement benefits.

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For more information you can reach the plan administrator for CUNA Mutual Group at 5910 Mineral Point Rd Madison, WI 53705; or by calling them at (608) 238-5851.