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.
Divorcing couples in Pennsylvania are called on to perform the arduous task of valuing and dividing marital assets. Appraisals must often be performed, value statements for retirement accounts must be obtained, tax records must be reviewed ,and blue book values must be consulted for vehicles.
According to a recent online marketplace survey by Worthy, 46 percent of divorced or soon-to-be divorced women face financial surprises during the separation process. Ex-wives in Pennsylvania may be taken aback by certain circumstances, including the need to go back to work, the high cost of health insurance and the price of the divorce itself.
Pennsylvania households that go through divorce face greater difficulty amassing retirement wealth. According to the Center for Retirement Research, households with couples who remain married have about 30 percent more net wealth than their divorced counterparts. They also have a 5 percent greater risk of running out of assets. However, there is one big exception to this phenomenon: single women.
Couples in Pennsylvania are finding that divorce can have a devastating impact on a family's finances. Since divorce is prevalent, all people are encouraged to consider every aspect of their finances when in the process of a divorce or dispute. This is especially important because the household's finances become divided into two separate homes. One of the most important considerations is how the student's financial plans will be handled in the event of a devastating divorce.
Some Pennsylvania residents who are preparing to tie the knot may not have considered getting a prenuptial agreement. However, those who are bringing assets into a marriage may wish to consider a prenuptial agreement to protect those assets in the event of a divorce.
When a Pennsylvania couple ends their marriage, it is important to know the value of the marital assets for property division. In a high-asset divorce, this may be particularly complex.
A report from a large wealth management firm has revealed that married women still tend to fall into traditional gender roles when it comes to long-term financial decisions and investing. Among married women, 56 percent reported leaving most financial affairs to their husbands. A chief strategy officer at the company called the hands-off approach financial abdication. When women stayed out of the loop about their marital finances, spousal death or divorce frequently involved financial surprises. Older Pennsylvania couples headed toward divorce may want to keep this in mind.
Pennsylvania couples who are considering divorce might want to do some planning and organizing before beginning the process. This can save time, money and the complications of having to gather the documents after the process begins.
Pennsylvania residents who are getting divorced may be able to end their marriage with a negotiated settlement. Divorce mediation may be an alternative to litigation for those who want to come to an agreement through communication and understanding. The goal of mediation is to work with a neutral party to create an agreement that is fair and that adheres to state law. In many cases, mediation can be less expensive and take less time to complete compared to a lawsuit.