New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Harsco Employees: Avoid These Costly Financial Mistakes During Divorce

“Harsco 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.

“Harsco 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 Harsco 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 Harsco 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.

Featured Video

Articles you may find interesting:

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 Harsco 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 .

How does the Harsco Pension Scheme ensure that investment strategies align with the financial goals of its members, and what measures are in place to assess the adequacy of these strategies over time? Given the complexities involved in managing a pension scheme, understanding the decision-making processes and the criteria for evaluating fund performance is crucial for members to make informed retirement choices.

Investment Strategy Alignment: The Harsco Pension Scheme ensures that its investment strategies align with members' financial goals by regularly reviewing its Statement of Investment Principles (SIP) and adjusting strategies based on quarterly performance monitoring. The Trustees use tools such as LCP Visualise to track investment returns and funding levels, ensuring the Scheme is on track for full funding by 2025. This review process helps guarantee that the investment strategies are adequately meeting long-term goals and adapting to market conditions(Harsco Pension Scheme_3…).

In what ways does the Harsco Pension Scheme engage with its investment managers to ensure transparency and stewardship in voting on significant shareholder resolutions? Exploring how Harsco collaborates with these managers can shed light on the efficacy of decision-making and the importance of governance in the scheme's investment practices.

Engagement with Investment Managers: The Harsco Pension Scheme engages closely with its investment managers, delegating stewardship activities like voting on shareholder resolutions. These managers, such as BlackRock, follow rigorous voting and engagement policies, which are reviewed regularly. The Trustees ensure transparency by monitoring managers’ ESG integration and voting behaviors and by addressing significant issues, such as modern slavery or climate risks(Harsco Pension Scheme_3…).

What are the specific retirement benefits available to employees under the Harsco Pension Scheme, and how can members customize their retirement strategies to fit their individual needs? This question addresses the diversity of retirement options and the potential for tailoring plans to meet unique financial situations.

Retirement Benefits Customization: The Harsco Pension Scheme offers a range of retirement options, including default and self-select investment options that reflect member demographics and retirement preferences. Members can customize their retirement strategies through diversified funds, ensuring their investments are aligned with individual needs. The default strategy has been reviewed to ensure appropriateness for the majority, with options for drawdown, lump-sum withdrawals, or annuity purchases(Harsco Pension Scheme_3…).

How does the Harsco Pension Scheme handle the changing demographics of its membership, especially in terms of investment risk and available retirement options? Understanding how the scheme adapts to demographic trends can help employees anticipate changes that may affect their retirement savings and strategies.

Adapting to Demographic Changes: The Trustees monitor demographic trends and adapt the Scheme’s investment strategies accordingly. For example, as the Scheme matures, the investment allocation moves towards lower-risk assets to reflect the changing membership profile. Regular reviews ensure the Scheme adapts to the evolving needs of its members, helping to reduce risk while maintaining adequate returns(Harsco Pension Scheme_3…).

What is the process for Harsco employees to access their pension statements, and how frequently are these updates provided to ensure that members stay informed about their retirement savings progress? Regular communication about contributions and growth can significantly impact an employee's comfort level when planning for retirement.

Pension Statement Access: Harsco employees can access their pension statements through regular updates provided by the Trustees, typically on a quarterly basis. These statements, including detailed reports of contributions, investment growth, and progress toward retirement goals, help members stay informed and make adjustments as necessary(Harsco Pension Scheme_3…).

How does Harsco incorporate Environmental, Social, and Governance (ESG) considerations into its investment philosophy, and what impact do these principles have on the pension schemeâ€™s performance? A deeper examination into these aspects may enhance employee understanding of socially responsible investing trends within their pension fund.

ESG Considerations: The Harsco Pension Scheme integrates Environmental, Social, and Governance (ESG) principles into its investment strategy, regularly assessing its managers’ ESG practices. These assessments include human rights, climate change, and CEO pay ratios, ensuring that investments are socially responsible and aligned with long-term sustainability goals(Harsco Pension Scheme_3…).

What are the implications of the current IRS limits on contributions to retirement plans for employees participating in the Harsco Pension Scheme in 2024? Recognizing how these financial regulations impact personal contributions and matching funds can empower employees to maximize their retirement funding strategies.

IRS Limits Impact: The current IRS limits on contributions to retirement plans, such as those applicable in 2024, directly impact Harsco employees by capping how much they can contribute tax-free. Understanding these limits helps employees plan their contributions to maximize employer matching and ensure they take full advantage of their retirement benefits(Harsco Pension Scheme_3…).

With regards to the ongoing performance evaluations, what benchmarks does the Harsco Pension Scheme utilize to measure the success of its investments, and how are these benchmarks selected? This insight can help employees understand the performance metrics that drive the long-term viability of their pension scheme.

Benchmarking Investments: The Harsco Pension Scheme uses various benchmarks to assess the performance of its investments. These benchmarks are selected based on expected risk and return profiles and are reviewed quarterly. Monitoring against these benchmarks ensures that the Scheme’s strategies remain aligned with long-term funding goals and adapt to changing market conditions(Harsco Pension Scheme_3…).

How can Harsco employees obtain more information on the specific investment options available within the pension scheme, including the associated risks and potential returns? Access to comprehensive investment literature is essential for employees to make well-informed decisions regarding their pension scheme participation.

Investment Options and Information: Harsco employees can obtain detailed information about their pension’s investment options, including the associated risks and potential returns, through regular reports from the Trustees and investment consultants. This transparency allows employees to make informed decisions about their pension participation(Harsco Pension Scheme_3…).

What is the preferred method for employees to contact Harsco to gain further clarification on their questions about the pension scheme, and what resources are available for them during the retirement process? Clear communication channels and support mechanisms are vital as employees navigate their retirement preparations. These questions are designed to provoke thought and discussion around the operations, benefits, and governance of the Harsco Pension Scheme while providing employees with a foundation for understanding their retirement options.

Communication Channels: Employees can contact the Trustees of the Harsco Pension Scheme for clarification on pension-related questions through established communication channels. Resources, including personalized financial advice and regular meetings with investment managers, are available to assist employees during the retirement planning process(Harsco Pension Scheme_3…).