The rates of couples divorcing after age fifty doubled between 1990 and 2010 and recent research reveals that the so-called gray divorce trend has remained steady since. Longer life spans, more women in the workforce, and changing views on marriage have given way to even older couples choosing divorce.
The decision to divorce comes with unique financial challenges for those approaching retirement age. Research finds that older adults can experience some difficulty recouping financial losses associated with divorce. After all, two households are more expensive than one and retirement funds you were counting on have to be split.
To overcome the odds, options such as delaying retirement, returning to work, downsizing your home and making some lifestyle adjustments will all help to make the transition more manageable. Catching up on retirement fund contributions and planning to draw down from savings in different ways can help you reach your retirement goals.
When deciding how to divide marital property, especially homes and retirement funds where most wealth is often concentrated, make sure you understand the pros and cons of each asset taking the long view. Keeping the family home may be something you are interested in, but be sure to factor in maintenance costs and also, what the marketplace and tax implications will be if you decide to sell in the future. As for retirement accounts, products such as IRA’s and 401K’s have different tax treatments when withdrawn, so adjustments will have to be made in the overall division of property.
If you are contemplating divorce, particularly later in life, it is good advice to seek the help of an experienced family law attorney in order to get the best settlement possible. Contact the Law Offices of Schlesinger & Strauss LLC for help with divorce, property division and other family law matters today.
