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How to Avoid Letting a Gray Divorce Derail Your Retirement

Posted on in Divorce

Wheaton divorce lawyersAlthough statistics indicate that the divorce rate is declining across most age groups, couples over the age of 50 are ending their relationships at an unprecedented rate. In fact, rates have more than doubled over the last decade, and it is leaving many soon-to-be retirees at risk for future financial troubles. Learn how you can mitigate against such issues, and discover how assistance from our seasoned divorce lawyers can help. 

Understanding the Potential Effects of a Gray Divorce

Divorce can be costly at any age, but those who are nearing the end of their working years have less time to recover from the financial toll that a divorce can have on their savings and retirement accounts. Marital assets must be equitably split between the parties - and that can include everything from jointly acquired inheritances and co-mingled premarital assets to retirement accounts and businesses that were established during the marriage. 

Since the plan was for the couple to retire and share expenses and assets, this splitting can leave both parties at risk for financial devastation during their retirement years. Matters often become even more complex when there are still minor children in the picture or a party is in the dark about their finances (which is exceptionally common in heterosexual relationships, particularly those in the over 50 age group). Thankfully, there are ways to mitigate these risks. 

Tips for Reducing the Financial Impact of a Gray Divorce

Although it may not be possible to mitigate against all of the issues in a gray divorce, there are some strategies and solutions that one can use to minimize much of the damage. Examples include: 

  • Delaying retirement;
  • Contributing more to your retirement account once the divorce is finalized;
  • Hiring a financial advisor to assist you with a long-term financial plan;
  • Negotiating or mediating your divorce instead of litigating;
  • Ensuring your marital estate is accurately valued;
  • Collecting social security under your soon-to-be ex-spouse;
  • Selling the family home and relocating to a smaller, more affordable place;
  • Taking a smaller settlement in exchange for alimony (if applicable);
  • Offering a larger settlement in lieu of paying alimony (if applicable); and
  • Ensuring you have a seasoned divorce attorney on your side. 

Contact Our Experienced DuPage County Divorce Lawyers

When your retirement and financial well-being are on the line, it is important to have an advocate on your side, protecting your rights. Seasoned and committed to your best interests, Davi Law Group, LLC can examine your situation, explain your options, and assist you in making the tough decisions ahead. Schedule your personalized consultation with our seasoned DuPage County divorce lawyers to learn more. Call 630-580-6373 today. 

Sources:

https://wtop.com/business-finance/2017/02/65-know-can-afford-grey-divorce/

https://www.washingtonpost.com/news/get-there/wp/2018/03/26/a-gray-divorce-can-devastate-your-retirement-plans-heres-how/?noredirect=on&utm_term=.dc5bdd438f01

http://www2.philly.com/philly/business/retirement/senior-splitting-from-your-spouse-collaborative-divorce-is-a-friendlier-cheaper-way-20180706.html

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