The trouble with baby boomer divorces
For those who pay attention to America’s divorce rate, it is indeed increasing. According to a Fortune.com report, it could be attributable to the greater number of baby boomers who are getting divorced. Indeed, this may be due to changing views about marriage or economic independence. However, graying divorcees may face challenging financial circumstances after a divorce.
After all, older divorcees may be faced with a shrinking pool of assets to fund their respective retirements. Marital assets are split during a divorce, meaning that retirement accounts, pension plans may not be as valuable when divided into two. This may lead to the realization that there isn’t enough to use for retirement. So this may force significant changes to retirement plans altogether.
Further, retiring as a single person could cost more since divorced retirees may not share their expenses. For instance, they may have to pay rent (or a mortgage) on their own, they may have to take separate trips to see grandchildren, and may not have as many resources to pay medical expenses.
Ultimately, older divorcees must take more time to plan for life after divorce since they do not have the luxury of time to “figure things out” as younger people do. With many more assets to divide, a divorce will be just as much a business dissolution as it will be an emotional one.
If you are considering divorce, would be prudent to consult an experienced financial advisor to work with a family law attorney in order to understand the financial implications of one’s legal decisions.