What to Do If You’re Considering Divorce Near Retirement
There has been plenty of research debunking the notion that half of all marriages today end in divorce. In general, the divorce rate has drastically decreased over the last two or three decades. However, there is one noteworthy demographical exception: people over 50 have had their divorce rate more than double since 1990. The information comes from a study by the National Center for Family & Marriage Research at Bowling Green State University.
There are a number of challenges associated when getting divorced at an older age, as the parties involved may be approaching retirement. You may have spent years saving money and have probably achieved your peak salary. Divorce could threaten to undo all of this hard work.
However, there are some steps you can take to preserve your savings as much as possible if you feel your marriage is heading for divorce. Consider the following:
- Conduct a cohesive review of your finances: Before either party files for divorce, map out in detail how you’re making money and how you’re spending it. It might have been a while since you got a completely accurate financial picture. Doing this can help you understand how to proceed.
- Find new income sources: Your household income may take a big hit after you get a divorce. See if you can find ways to help bridge that gap. You may have to downsize to reduce your expenses. If you are very close to retirement, applying for Social Security a little early might be a good option. A financial planner will be able to offer more insights.
- Delay the divorce, if possible or realistic: This is not always an option, but if you are able to push off a divorce until you have met certain financial milestones, it may provide some benefits. One big milestone is eligibility for Medicare at 65 years old. If you would lose health insurance coverage from your spouse, Medicare would cost much less than healthcare exchange plans or COBRA.
- Leverage retirement benefits: Retirement assets are going to be split with your spouse as a part of your divorce — that is unavoidable. But there are certain steps you can take with the help of a divorce attorney to eliminate some of the losses you would otherwise experience.
For more detailed information on achieving the best outcome possible as you look to dissolve your marriage, speak with a trusted divorce attorney at Bryan L. Salamone & Associates.