Divorce is a complicated and emotionally charged process, but it can be especially so for two parties who are nearing retirement age. If you are over the age of 50 and moving forward with divorce, you may have significant concerns about how this decision will impact your financial future. A gray divorce is complex, but you can make choices that will help you keep your retirement dreams intact.
When an older couple divorces, both parties have fewer years to save and recoup losses before it is time to retire. You may wonder if your decision will completely derail your plans for your golden years. While your divorce will likely mean you will have to make financial adjustments, knowing what to expect and being prepared can help you avoid problems in the future.
Things to keep in mind
Gray divorce is now rather common. Thanks to a longer life expectancy, less stigma regarding divorce and other reasons, divorce among older couples is no longer an anomaly. Some people who go through a divorce later in life find that the process leaves them in financial devastation, especially regarding their retirement plans. This does not have to be the case for you. Consider the following tips:
- You may need to recalculate your retirement savings because marital property, including your retirement savings, is subject to division between the two parties. Divorce will mean you will have less saved for retirement, but you can fight to ensure you receive your fair share of these assets.
- You may have to adjust the date you currently have set for retirement. Many people who go through a gray divorce find they need to work a bit longer in order to save more.
- You will find it beneficial to calculate what your post-divorce financial situation will be like. Consider cash flow on one income, your expenses and other factors that could impact your lifestyle.
When you plan and understand the financial implications of divorce, you will be better equipped to make necessary adjustments and move forward with confidence.
Help from the very beginning
If you are facing the prospect of gray divorce, you do not have to handle it alone. You will find it helpful to discuss your financial concerns with an experienced Pennsylvania family law attorney who can help you understand your options and protect your right to a fair property division settlement.