Divorce is going to bring significant financial changes to your life no matter how old you are, but the implications are particularly serious for an older individual. Gray divorce, which typically involves one or two people over the age of 50, is a growing trend. This means it is more common for people closer to retirement age wondering what will happen to their financial security later in life.
Gray divorce will certainly affect your stability and perhaps even your plans for the future, but that does not mean that you will never be able to retire or that you will live in poverty. With preparation and a full understanding of what to expect, you can pursue an order that will work for you long-term. When making decisions, it is in your interests to think long-term, not acting according to how you feel in the moment.
Points to consider
If you are 50 or older, you probably have retirement savings set aside for your golden years. However, you could lose a portion of these assets in your divorce. In most cases, savings accumulated over the course of a marriage are marital assets, which means that they are eligible for distribution. In addition to your retirement savings, you may also want to consider other things:
- Your home – You may want to stay in your home, but this may not be wise. Think about whether you will be able to afford the cost of upkeep or pay the taxes on one or reduced income.
- Your savings – You could lose some of your savings in a divorce, whether it’s an IRA, a pension or other type of account. You may be able to negotiate a settlement that allows you to retain a reasonable amount in lieu of other assets or support.
- Your retirement date – You may have to push back the date you planned to retire after a gray divorce. Working longer or even working part time during your retirement can help you rebuild savings.
These are only a few of the factors that could impact you after a gray divorce. You will find it beneficial to work closely with an experienced California attorney who can help you fight for a strong and stable future. Change is inevitable, but you can secure terms that allow you to look to the future with confidence.