Divorce during any time of life can create new financial challenges. What was once a couple working together to maintain a household becomes two individuals adjusting to a new set of circumstances. But as we know, it can be easier for younger people to make the necessary adjustments than those who are pushing toward retirement age.
But the fact is, more and more couples in their fifties and older are deciding it is time to call it quits on their marriages. According to a university professor, between the years 1990 and 2013, the divorce rate among couples in this age group more or less doubled. The term for such splits is “gray divorce.”
Gray divorces can be more complicated than divorces between younger people. Generally, the longer a couple is married, the more assets they have jointly accrued. Another point of consideration is that couples who have been married for 10 or more years have spousal Social Security benefits issues to work out. All of this is combined with the rather frightening prospect of trying to remain in the workforce and live off the money they are currently earning.
A certified divorce financial analyst says that older divorcing couples often opt to carry out a collaborative divorce. In engaging in a collaborative divorce, the couple attempts to work out the best possible long-term plans for both parties.
While the collaborative approach has its benefits, it is important to make sure that the final division of property and assets is actually fair and equitable. With so many different kinds of assets, such as 401(k) plans and other investments potentially needing to be divided, the details of a gray divorce can become very complex.
If your marriage of many years is coming to an end with a divorce, you may want to contact a Texas divorce attorney to help you go over the details. Even if your primary goal is to end the marriage amicably, it is important that you protect your future interests.
Source: Paradise Post, “How divorce after 50 may affect your retirement savings,” Janet Kidd Stewart, Feb. 13, 2015