Grey divorce, the trend of individuals over 50 ending their marriages, is on the rise across America. There are a number of reasons why this might be, but Texas residents are likely unsurprised to learn that divorce for the retirement-aged comes with unique divorce issues. Thankfully, there are ways to prepare for these issues so both parties are not blindsided by problems they did not expect to encounter.
Perhaps the most important part of preparing for a divorce is determining how asset and debt division will work. Unfortunately, many people fail to take into consideration beneficiaries and powers of attorney that were granted during happier times. Changing the recipients of benefits, particularly as they pertain to retirement benefits, is a good place to start.
Individuals facing divorce prior to retirement may also face a deficit in planned savings. Using catch-up methods, in which older people are able to put more into their 401(k) and IRAs than younger people, may help shore up the difference. Seeking the support of a financial adviser to navigate these changes may also be helpful.
No one enters a marriage expecting it to end in divorce. Texas residents approaching a grey divorce may feel overwhelmed by the enormity of this decision in late life, but there are supports in place to help people get through this transition and still go on to their golden years in much the same way as they had planned. Planning for divorce issues unique to late-life divorce and seeking out professional support in handling those issues can make all the difference in the settlement and beyond.
Source: Forbes, “Easing The Financial Impact Of Divorce In Retirement“, Juliette Fairley, Jan. 22, 2016