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The financial impact of divorce for baby boomers

As Kentucky readers may know, many older Americans are choosing to end their marriages later in life, a decision that is sure to have a serious impact on retirement. Baby boomers who are already retired or approaching retirement could face major financial changes, and many find it necessary to adjust retirement plans. Statistics indicate that women are especially susceptible to the financial impact of a gray divorce

It is estimated that one in five people age 50 and up are still working. It is possible that many of these individuals have found it necessary to remain in or re-enter the workforce after experiencing a divorce later in life. When a marriage ends later in life, a person may not have an abundance of time or the career opportunities to bounce back financially. It is believed that women who divorce in their fifties are far more likely to be working at age 60 or beyond.

Women often suffer disproportionately from the financial fallout of a later-in-life divorce. For example, it is common for women to trade retirement assets in exchange for keeping the family home, but the tax burden and costs of maintaining a home on one income can be burdensome. By working with an experienced lawyer, it is possible to make decisions that are financially beneficial and allow for a strong post-divorce future.

Divorce is never easy, but it can be particularly difficult for women over the age of 50. Before initiating the divorce process, a Kentucky reader can benefit from a complete case evaluation with an experienced attorney. The financial impact of a divorce may be inevitable, but it is possible to mitigate the severity of potential negative consequences.

Source: bloomberg.com, "Divorce Is Destroying Retirement", Ben Steverman, Oct. 17, 2016

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