The number of couples divorcing later in life has reached an all-time high in recent years. Sometimes referred to as “gray divorces,” it is now fairly common for couples to nearer to retirement to divorce. This can be due to a number of reasons. For instance, maybe the kids have grown up and they are officially empty-nesters who realize that kids were the only things they had in common. Whatever the reason, there are special considerations those who are getting divorced later in life, closer to retirement, should take into account beforehand. Such considerations can be critical in planning for financial security in retirement years.
Considerations for Divorcing Before Retirement
As you near retirement years, you have often reached or surpassed your peak earning years and your earning years are dwindling. Because you have fewer years to work prior to your goal retirement age, you have less time to recover from any financial setbacks you may have experienced because of divorce. Divorce, after all, can have significant financial implications for a person. You may be used to a two-income household where you share expenses with your spouse. After divorce, you may now be shouldering all household expenses with just your own income. This all comes on top of the costs associated with getting divorced as well.
There is also the division of the marital debts and assets that can pose financial challenges and setbacks for a person. That is why the division of the marital debts and assets should be approached with such care during the divorce process. This may be especially true if you are nearing retirement age. For example, evaluate things such as whether a certain asset may end up turning into a liability. Do you really want the marital home? Think about the cost of upkeep, the mortgage payment, insurance costs, etc. If these are things you cannot budget for accordingly, it may be best to let your spouse assume this asset or sell the house and divide the proceeds from the sale. It should also be noted that retirement accounts can be considered marital assets and, thus, subject to division during divorce.
You should take a good hard look at your finances and plan for your financial future. You may be faced with some difficult decisions such as whether or not you should put off retiring past your original goal date. You may have to reevaluate your budget and tighten up on expenses to make the original goal date workable.
Family Law Attorney
Divorce does not have to mean financial trouble for those nearing retirement age. There are ways to plan and recover from any setbacks. The help of trusted legal counsel can go a long way to helping you protect your best interests and securing your financial interests. Look no further than talking with the dedicated family law team at The Law Office of Bryce Cook about your options. Contact the Law Offices of Bryce Cook today.