A recent article in the NY Times highlights an issue that is not often discussed, divorce by people who are approaching retirement. Suddenly the images of a golden retirement are discarded. Questions arise about what assets are available to the people who are splitting up. How will their lifestyles be affected?
The divorce rate in the United States among people 50 or older has doubled since 1990, according to a study by the National Center for Family and Marriage Research at Bowling Green State University in Ohio. And as the American population steadily ages, gray divorces will keep rising: By 2030, it is estimated that 800,000 will occur annually.
Divorce is emotionally devastating. From a financial perspective it can destroy retirement plans since assets that the couple expected to bring to their golden years are often cut in half. Getting past the divorce process and still retiring can be a challenging process.
That’s why, along with a good attorney, a person getting a divorce needs a financial planner. In fact, the article suggests a financial planner may be even more important.
To avoid this emotional logjam and negotiate a better settlement, experts suggest hiring a financial planner even before finding a good divorce lawyer. These planners can help divorcing spouses navigate a maze of retirement plan laws, make cash-flow forecasts and maximize tax-free distributions.
If you find yourself in this situation, you may want to contact us for a consultation.