Divorce can have significant impact on retirement

According to recent trends, it appears that the overall rate for marital dissolutions has decreased slightly over the past several years with the exception of one segment of the population: those over age 50. The upswing in the divorce rate for this demographic is often referred to as the “gray divorce” and has increased in numbers during the past two decades. While there may be many reasons for this rise in later-in-life divorces, Colorado residents may benefit from careful planning in order to preserve their retirement options.

Often times, when older couples are contemplating a divorce, the first professional they will consult is a financial planner. These financial advisors may enable an individual who is nearing retirement to plan for a divorce while still retaining the ability to retire as hoped. There are often many unexpected expenses that a divorcing couple did not anticipate that can have a negative impact on savings and retirement plans.

Along with the monetary expenses of a divorce itself, there are also the emotional and social aspects to consider. Along with the division of marital assets and retirement accounts, there may be a loss of emotional support when friends and associates drift away. A late-in-life divorce may lead one to make more frequent withdraws from retirement or savings accounts in order to meet expenses, such as the regular upkeep of a home, which can lead to an increase in debt and additional emotional strain.

Due to these potential costs and the emotional upheaval during the divorce process, some former spouses may elect to not fight for an equitable share of the assets. However, it may be a advisable to seek assistance in order to preserve one’s hopes for the future. The guidance and input of an experienced Colorado family law attorney can be invaluable during this tumultuous time in order to seek the best options for a fresh start after the final decree is issued.

Source: Forbes, “The Five Most Taboo Topics In Retirement: #4 Divorce“, Robert Laura, Nov. 29, 2017