Divorce is rarely easy. Most of the time, it is one of the hardest things to go through in life regardless what age you and your spouse are.
While divorce rates have actually gone down in most age categories, according to the PEW Research Center, divorce rates among couples who are 50 years and older have doubled since the 1990s. For those couples who are 65 years old and older, the divorce rate has almost tripled in the same time period.* This phenomenon is being referred to as “gray divorce”.
While jokes about “trading in the old spouse for a newer model” have been quipped about for years, divorcing later in life can actually have greater consequences financially than divorce at a younger age due to the fact that your retirement nest-egg and assets are more often than not, split evenly down the middle.** How would you feel if you lost half of your retirement portfolio worth? Add to it, it’s sometimes more difficult to recover from a divorce if you are 50 years of age or older because you have less time to rebuild your retirement account and it’s not out of the norm to have less employment opportunities as you near retirement age.
In divorce cases for younger couples, it’s not uncommon for one of the spouses to receive monthly alimony payments to help them out until they get their finances in order to gain the ability to live on their own. In New York, however, alimony payments are oftentimes ordered for life for those couples who are in their senior years.**
Again, divorce is never fun. One of the most difficult life lessons is figuring out how to let go of people who have been such a huge part of it. The one thing you don’t want to do is throw up your hands and just rely on hope to get you through. Make sure to call your Financial Advisor along with your lawyer to help protect your interests to last you through retirement.
As always, if you have questions about your financial future or potential big changes that could impact your retirement, give us a call at 913-393-1000 or fill out the form below to request a meeting today.