America’s divorce rate might be on the decline for most age
groups, but amongst one group it’s hitting record highs. Who’s behind the
spike? Baby boomers. The divorce rate for the over-50
crowd has more than tripled in the past 20 years, and the trend shows little
chance of slowing. With Americans
living
longer and looking for more from their marriages, many are choosing
to jettison an unloved spouse rather than spend their golden years
with someone they no longer care for.
Unfortunately, many boomers are divorcing first and thinking
later. Adjusting to life after a divorce is difficult under the best of
circumstances, but divorce after 50 can have serious financial repercussions.
Boomers need to understand the risks of late-in-life divorce, and take steps to
prepare themselves before they file.
Financial Repercussions of Divorce
First, boomers need to consider their retirement. Have you
and your spouse been saving money? Investing in a retirement plan? Whatever
money you saved will now have to fund two separate retirements, which means that it likely won’t
go as far. At best, this could mean that a person has to adjust their lifestyle
and expectations; at worst, it could mean that a person would have to work much
longer than anticipated.
Second, health care costs will likely rise. Health spending
tends to increase as a person ages, but married couples are often able to
defray some of these costs by caring for each other rather than hiring a nurse
or a caregiver. Divorcing boomers need to consider who will care for them–and
how much it will cost–before they experience a major health event.
Third, though some divorcees may anticipate short-term
financial losses, older couples need to consider the long-term as well. If a person in their 30s goes
through a divorce, they have decades to continue working, to make up any
losses, and to prepare for their retirement. If a person in their late 60s
chooses to divorce, they’ll have far less time to recuperate.
Finally, consider the difference between a “fair” division of marital property and an “equitable” one. While it might
seem “fair” to split everything 50/50, it might be more “equitable” for a
spouse who forewent their career to care for a family to take a greater share
of the marital estate. Also consider which assets are easy to liquidate, should
the need arise, and which assets might take longer to sell.
How to Prepare for Later in Life Divorce
The most important thing you can do before a divorce is
initiated is to make sure that you have a handle on your finances. Do you know
where your money is, and how to access it? Are your bills paid? Do your credit
cards have a low balance? Does it seem like there should be more money in your
joint account than actually is there? Find out now, if you don’t know.
Contact a Tampa Bay Divorce Attorney
If you are considering a divorce and are concerned about the
effect it could have on your finances, contact our Experienced Attorneys & Counselors at Law since 1997 Serving all of Tampa Bay. Call 813-672-1900 now for a free initial consultation www.familymaritallaw.com.
