Divorce and its possible effects on retirement

According to reports, divorce among those over the age of 50 has increased two-fold. As a result, retirement savings can be negatively impacted. There are steps that can be taken that may be useful to Colorado residents in this age demographic who are contemplating divorce.

In the majority of households headed by older couples, the family finances are likely tended to by one spouse. However, experts stress the importance of both spouses knowing the state of their financial well-being. Having a working knowledge of savings accounts as well as retirement savings may make the division of assets more equitable for both parties as well as address tax issues appropriately. Additionally, if a divorce is on the horizon, it may encourage better monetary habits in order to prepare for a newly-single life and looming retirement.

A recent report highlighted the steps that both men and women take just before and after a divorce. In almost every area examined, women appeared to take more pro-active steps to improve their overall financial health. Women were reportedly more inclined to increase savings, look for employment opportunities and decrease spending in the aftermath of a divorce.

Women were also more likely to seek advice for financial planning. However, both parties can prepare for life after marriage by determining what might be needed for retirement and taking the steps necessary beforehand in order to reach their goals. A divorce does not need to be the end of dreams for a comfortable retirement; rather, it can be an opportunity to live as one always desired with careful planning. Colorado residents can consult with an attorney skilled in assisting those who are unsure of how to proceed in their own divorce.

Source:

military-technologies.net, “New Survey of CPA Financial Planners Explores Financial Impact of Divorce on Retirement”, Feb. 9, 2017