When most people in Florida think of divorce, they do not necessarily think of an older couple divorcing. However, divorce is increasing among people who are over the age of 50. In fact, there is a specific term for this type of break-up: it is known as a “gray divorce.” If you are part of this subgroup, you may be wondering how divorce at this stage in your life affects your retirement plans.
According to Forbes, over the past 25 years divorces among those who are 50 or older have increased significantly. Due to a variety of reasons, the divorce rate in this age group increased by 109% during this time span. People experiencing a gray divorce should know that there are different matters that may not have applied in their younger years that now need to be considered. Primarily, they are concerns that have financial ramifications for both parties involved.
First, when older adults divorce, they may be already in or close to retirement. This means that their earnings have either stopped or do not have the same potential they may have had at a younger age. If a couple does not have substantial assets, it may be hard to figure out an equitable way to divide them, especially where their home is concerned. And, a gray divorce may alter a couple’s plans to delay retirement account withdrawals. This may have tax implications that should be carefully contemplated.
This information is intended for educational purposes only and should not be interpreted as legal advice.