An increasing number of older Americans in Pennsylvania and across the country are considering divorce. Since 1990, the divorce rate for people age 50 and older has doubled, a trend that shows all signs of continuing. This has taken place even as the same rate has flattened out or even declined for younger Americans or across demographic groups as a whole. While people in remarriages and those who have been married for a shorter period of time are most likely to divorce, “gray divorce” can impact even couples who have been together for decades.
Dividing retirement funds can be a significant part of divorce at any age, but it can be particularly important for people at or near retirement age themselves. Those savings and investments were often made with the idea of being shared, and planning two retirements on the same amount of money can be far costlier. In addition, people have less time after the divorce is finalized to rebuild their accounts for their retirement. It is possible to divide assets and come out successfully on the other side of divorce, and planning for the financial changes to come can help people do so.
For starters, it can be important to stay financially prudent. Many people are tempted to spend more after a divorce, but this can be a bad time to splurge. Instead, this is a particularly crucial time to save and refrain from excessive spending. In addition, a financial advisor can help advise people on how to recover from a divorce, including investment strategies to maximize holdings as well as opportunities for savings.
When people age 50 and older consider divorce, they may find the financial aspects of ending their marriage particularly concerning. A family law attorney can provide advice, guidance and representation on all divorce matters, including property division and spousal support.