Going through a divorce can be rough at any stage but older Americans who are divorcing can face a host of challenges. Fortunately, the family law process is available to help guide divorcing couples through their divorce and property division processes and to help them address their concerns, including retirement concerns and how retirement will be impacted by the divorce.
Property division later in life can be especially challenging as assets are intertwined and plans for retirement may have already been made. Divorce rates among those over age 50 are increasing and research shows that the number of couples divorcing after 50 has doubled since the 1990s. Divorcing later in life can cause expenses to double in some instances when retirement accounts and savings may have been based on other plan for the future.
Couples who are divorcing later in life should be aware of some useful tips to help guide them through the process and should also be aware that family law resources are available to help them. Spouses who are divorcing later in life should make sure to limit the impact of their emotions on the decisions they make. Because their decisions should be as reasonable as possible, focused on their financial picture and needs, it is also important they are familiar with what their financial picture is and that they have their financial documents in order. Divorcing couples should also be aware of who owns any life insurance policies the couple may have. Divorcing couples should also meet with a financial advisor who can help with retirement accounts and should always consider the tax consequences of any property division settlement.
Couples who are divorcing later in life, or going through a gray divorce, will also want to ensure they are maximizing retirement income and understand how their retirement accounts will be handled during the process. Knowing what to expect, and how to protect their interests, is important for couples going through a divorce at any age.