Studies show that retiring couples are divorcing at an unprecedented rate – one that has doubled in just the last couple of decades. In many ways, it could be considered a positive thing. It suggests aging couples are living longer and have more financial confidence than they once did, and that gives them the power to make decisions by looking at their quality of life. They do not have to feel pressured to maintain the status quo. However, there are still some important factors to consider before pursuing divorce. The following explains further.
Divorce and Retirement
Most couples plan for just one home and one set of bills. Divorce can disrupt this plan – sometimes drastically so. In fact, even the most comprehensive retirement plan can fall short of providing for both parties after a divorce. Some individuals may be able to delay their retirement and make up for the income they lose, but others may not be healthy enough to do so. The latter group may need to scale back their lifestyle to ensure financial stability during their golden years. Still, others may suffer from divorce-induced poverty. All these couples could benefit from careful divorce and retirement planning before moving forward.
Mitigating Against the Risks
There are numerous ways that couples can approach retirement and divorce. Some may choose to legally separate, rather than pursue a full divorce. Doing so may reduce the overall cost of separating but would still allow for provisions like alimony and allocation of any outstanding debts. However, there are some disadvantages to this route of separation. For example, retirement accounts can only be split in the event of a divorce, so spouses who are listed as beneficiaries would not have any rights to the account unless the owner passed away.
Another option would be to speak with an attorney and financial advisor about your marital estate. Doing so can give you an idea of how much your settlement might be, and it gives you the opportunity to determine if you need more time to handle debts or increase your savings.
Contact Our Wheaton Divorce Attorneys
At Abear Law Offices, we understand the unique challenges that retiring divorcees must face. Dedicated and experienced, we can protect your rights and help you adequately plan for your future. Schedule your consultation with our Wheaton divorce lawyers to learn more. Call 630-904-3033 today.