Marriages seem to be lasting long for Millennials, but there is one group calling it quits at a much larger rate than their younger peers -- the Baby Boomers. While divorce rates are falling for most people in New York, individuals who are at least 50 years old are filing at an increasingly high rate. This has a particularly significant effect on retirement for Boomers who are ready to end their marriages.
While divorcing couples usually agree that filing was the best decision, there is little denying the financial impact that the process can have. Many people choose to carefully plan their finances prior to filing. However, it is still possible to minimize the financial implications of a divorce even when the couple splitting up is over the age of 50.
Gray divorce -- or divorce involving couples who are nearing retirement -- brings with it a significant concern for retirement funds. Savings that were meant to care for two people might no longer be sufficient after being split, as each portion will have to support separate households. For some, this brings about an understandable fear of having to work past the age of retirement. This is especially true for women, who tend to take a larger financial hit than their male counterparts.
Rather than delay divorce out of fear of the financial consequences, couples in New York can minimize the financial impact. Most people accomplish this by maintaining a careful focus on issues that most affect finances, including asset division and alimony. Keeping all related financial documents on hand throughout the process is usually also a good idea.
Source: Bloomberg, "Divorce Is Destroying Retirement", Ben Steverman, Oct. 17, 2016