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Late-life divorce issues may affect retirement

Thursday, July 27, 2017

With the divorce rate for people over 50 -- colloquially referred to as "grey divorce" -- on the rise, more experts are beginning to take a look at the potential fallout of divorce for older people. Divorce issues tend to vary depending on a variety of factors, including the age of both spouses and their financial situation. For those Texas residents experiencing grey divorce, it can be vitally important to understand how a divorce will influence their late-life planning. 

In general, divorce rates for older couples pick up around the beginning of the calendar year, once the holiday season is put to rest. Divorce rates for over-50 couples have doubled in the last 25 years. Troublingly, statistics now suggest that many people who divorce in this age group, particularly women, tend to hover right around the poverty line in terms of earnings. 

Additionally, changes to Social Security and retirements benefits brought on by divorce can drastically change an individual's retirement planning. Combined with the difficulty many older people face in maintaining employment at the same rate of pay as they age, this paints a worrisome picture for those divorcing after 50. Thankfully, there is an upside -- individuals facing late-life divorce tend to be less adversarial during the settlement process, allowing for a smoother and often more  even-handed settlement to be reached. 

The divorce issues faced by the older generation can be daunting, as some Texas residents are keenly aware. However, there is support available throughout the state for individuals making this late-life change. By seeking information on the specifics of the divorce process, both spouses can prepare themselves for the process and hopefully come out the other side happier and more fulfilled. 

Source: paradisepost.com, "How divorce after 50 may affect your retirement savings", Janet Kidd, Feb. 13, 2015

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