A financial planner says the most ‘financially disastrous’ consequence of divorce happens years in the future: retirement

• Retirement savings are often destroyed by divorce — retirement accounts can be considered marriage property instead of personal property, and divided between two ex-spouses.
• Divorced households are seven percentage points more likely not to have enough money for retirement, according to research from Boston College’s Center for Retirement Research. 
• To start understanding where your retirement savings stand after a divorce, a financial planner advises taking a look at your finances, and working with a financial planner to catch up on savings post-divorce. 
• SmartAsset’s free tool can find a financial adviser to help you plan for the future »

A lot changes in the wake of a divorce. But the biggest impact typically doesn’t come until years later.

“The most financially disastrous part of divorce is that you’re taking a unit that has two incomes with one residence and one retirement goal, and you’re splitting it,” Ameriprise private wealth adviser and financial planner Ylisa Sanford tells Business Insider. 

Where two incomes once supported one set of household goals, that same amount now has to support two separate households, and two separate retirements. 

Divorce can devastate retirement accounts

It’s not uncommon for retirement accounts to be lost in divorce. In some states, a 401(k) is considered community property, and can be divided 50-50. Just like other investments, your retirement account could be split 50-50, and if you and your spouse weren’t both contributing equally, your savings could be in jeopardy. 

As Reuters’ Beth Pinsker reports, the typical divorced household has a 30% lower net worth than a non-divorced household. The Center for Retirement Research at Boston College estimates that divorce has a similar impact on retirement accounts to the Great Recession had in 2008: Divorced households are seven percentage points more likely not to have enough money to make it through retirement, while the Great Recession made this same scenario nine percentage points more likely.

It’s much harder to make up for lost time

Saving early is the best way to take advantage of compound interest to boost retirement savings and grow long-term wealth. But after a divorce, you might have to start all over. 

In Sanford’s experience, helping your retirement funds recover from divorce starts by figuring out where they currently stand, and what needs work. “Part of what people are required to do in the process of divorce is go through their different expenses. Think, ‘What do I need for housing, groceries, dining, entertainment, travel, healthcare, medical costs? Those kinds of things,'” she says. 

Then, it’s important to consider anything you’ve gained or lost in the divorce. “How will any compensation be treated if there is anything such as alimony or property equalization, and what are the tax implications of that?” Sanford says. 

Then, you can start thinking about new retirement goals, and finding out how much you’ll need to make them possible.