Will your retirement plans survive a 50-plus divorce?
On behalf of Barli & Associates LLC posted in divorce on Thursday, May 24, 2018.
More and more spouses aged 50 and up are deciding to divorce. The divorce rate for people in this age category has increased markedly, having doubled since the 1990’s. This is probably the result of changing perceptions about marriage and family. Many older couples are taking the perspective that it’s better to go their separate ways than try to continue in a toxic or irreparable marriage.
When it comes to “gray divorces,” however, there are unique challenges aging couples face as they dissolve their marriages — particularly when it comes to retirement savings. Couples plan for their retirements together, and their planning strategies reflect the financial needs of a couple rather than two individuals living alone. As a couple, retirees benefit from sharing a multitude of expenses, like utilities, shelter, insurance, etc. — and makes life less expensive. As individuals, retirees face a cost of living that goes up substantially. In this respect, a divorce could render the retirement plans of both sides of the marriage completely unworkable.
One way to better understand the financial impact that divorce will have on your retirement plans is to discuss your divorce with a financial planner. A growing number of financial planners are marketing themselves to 50-plus divorcees as “divorce financial planners” and these planners can be helpful in assisting spouses to better understand how their divorce is going to affect them, and the changes they need to make. Your current financial planner, accountant and tax accountant will also be able to help you address the financial effects of your divorce.
If you’re ready to divorce respectfully, in a way that honors your financial needs and marital property rights, learn as much as you can about the nuances of New Jersey family law so you can protect your legal rights.
Source: CNBC, “A costly ‘gray divorce’ can upend your retirement plans,” Tim Sobolewky, accessed May 24, 2018