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DuPage County divorce attorneysMarried couples dream of retiring and enjoying their golden years together, but with the high rate of divorce these days, this dream is not always realized. In fact, divorce in retirement has become extremely common - so much so that it has even developed a name. Dubbed the gray divorce, retirement in your senior years can significantly impact your future. Learn how to prepare and mitigate the effects with help from the following sections. 

How Divorce Can Negatively Impact Your Retirement 

Divorce can be a costly endeavor, in and of itself, but its effect is often amplified when it occurs during or shortly before retirement. Much of this can be attributed to the division of assets and the lack of earning years left for the divorcing parties. Younger couples have time to rebuild their retirement; this may not be true for those approaching retirement or currently retired. Yet, like all other divorcing couples, their assets must be equitably distributed between the divorcing parties. 

Mitigating the Consequences of Divorce During Retirement 

Parties divorcing during or shortly before their retirement can mitigate the potential financial consequences with effective planning and preparation. The first step is to take an inventory of one’s income and expenses. Account for things like housing, utilities, food, and personal items. Then consider if any expenses can be cut, such as subscription services or luxury items. Next, determine if there may be any untapped resources. An example might be your spouse’s social security, which you may be eligible to collect, even after your divorce. 

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Wheaton divorce attorneysCouples nearing retirement often assume that they will stay together for the rest of their natural lives. Yet, with people living longer and healthier lives, many stop and evaluate their current situation as they move into their golden years. What some find is that they and their spouse have changed so much over the years that staying married no longer makes sense. 

How do you navigate such a massive financial and lifestyle change like a divorce without compromising your future? The following tips on navigating divorce during your retirement can help. 

Know How Divorce Will Affect Your Finances 

Divorce may be an emotional process, but it is the financial implications that tend to have the longest-lasting effect on one’s life. This statement is especially true for those heading into their retirement years. The following are just a few ways that divorce can affect your finances: 

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Wheaton divorce lawyerDivorce can impact every facet of your life—including your business and financial stability. Thankfully, there are a few key strategies that you can employ to minimize the risks to your business operations while also reducing the chances of it affecting your employees. Learn more about them in the following sections.

1. Keep Business and Your Personal Life Separate

It is not uncommon for married couples to co-own their family business. Even when one party is not directly involved in the day-to-day operations, they may hold shares in the company. In either case, both parties need to mindfully separate business from their personal life.

Conduct yourself professionally whenever you are at the company or conducting business, and stay away from marital matters whenever talking about business operations. Remember: the well-being of your employees and the future stability of your company could be on the line.

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Wheaton divorce lawyersEven in the simplest, most straightforward of divorces, the division of assets can lead to contention. In those with complex assets, the stakes are inevitably raised. Ensure you get your fair share during your Illinois divorce by understanding how complex assets are divided. 

What Are Complex Assets? 

For most assets, the value is straightforward. As an example, consider the balance of your bank account. Its value does not change, based on circumstance or the market. Instead, it is a real asset; its value is the displayed amount. Complex assets work differently. Their value may be difficult to determine because the value is constantly changing, based on market trends or future value (stocks, bonds, retirement accounts, real estate, etc.). Other assets are based on obscure factors, such as buyer interest or individual appraisers (artwork, jewelry, collectibles, etc.). Needless to say, dividing assets like these can be difficult and complex. 

Determining Your “Fair Share” in an Illinois Divorce 

Illinois is considered an equitable distribution state, meaning each party gets a “fair share” of the marital assets. In mediation and other alternative dispute resolution situations, the parties negotiate and agree upon their shares. In court, a judge makes the decision. There is no “right” or “wrong.” Instead, there are parameters used to determine what a spouse may be owed in divorce. Some of these factors include the: 

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Illinois divorce lawyersOut of all the assets that a couple owns, the house tends to be the most valuable. It only makes sense for parties to struggle when deciding what to do with it while going through a divorce. Its ability to cause contention between the parties is also understandable, yet arguments can cloud judgment. Stop fighting and start considering the pros and cons of selling your home in a divorce, which are outlined in this post. 

Reasons to Sell Your Home in a Divorce (and the Potential Benefits)

A house is more than just a building. It is full of family memories. It is, perhaps, where you raised your children. It is your home, and possibly the only connection you have to a happier time. As such, discussions about selling it may be triggering for either you or your spouse, yet there are many situations in which this might be the most beneficial route. 

It may be the only asset of value in your marriage, which means it may be the only way to ensure you have the money to start over. The cost of maintaining it (mortgage, maintenance, HOA fees, etc.) may be too much of a burden for either you or your spouse to bear. Selling it could allow you to pay off the mortgage and still have a little bit of money left over. 

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