Divorce Derailing Retirement

 
The baby boomer generation has been divorcing at alarming rates for the past decade or so.  In fact, divorce rates over the age of 50 have doubled in the past 20 years.  Middle-aged divorce, especially divorce after 50, can have an incredibly detrimental impact on retirement.  
Women are disproportionately affected by later divorce in terms of retirement.  According to Bloomberg, 27 percent of women divorced after age 50 live in poverty. Overall, late-in-life divorce can lower your income and force you to work longer than you may have expected.
Many women splitting up later in life want to maintain control of their marital house. This inevitably means they are sacrificing in a different financial area. Laying claim to real estate may not be the wisest financial decision. Money tied up in a house lacks liquidity, which is something to think about if you are planning to retire soon, or may already have retired.
In community property states like Washington, retirement assets are normally divided equally. This includes savings and pensions. When dividing up assets is it very important to assess the tax implications of different types of retirement savings. For instance, a million dollars in a 401k account does not have the same real value as a million dollars in a Roth IRA.
Late in life divorce does not have to be financially devastating if certain safeguards are implemented to protect your retirement.
If you have questions or concerns regarding your divorce in the Greater Seattle Area, we suggest hiring an experienced family law attorney. Please contact Elise Buie Family Law Group, PLLC for a free phone consultation. 

STAY UP TO DATE

Subscribe to our newsletters

 
Subscribe to one or more of our newsletters, delivering meaningful insight on topics that matter to you and your family.

FURTHER READING

Latest Blog Posts

Divorce can be a time of confusion and complexity. In addition to any emotional or other stress, your divorce can impact both your and your ex’s will. Therefore, it is important to understand what that impact may be and what…

While software developers are among the professions with the lowest divorce rates, coming in at 20.3%, workers in the technology sector who divorce face specific challenges during the divorce process. From how to locate and divide assets to determining parenting…

For parents, divorce often raises many questions surrounding extracurricular activities. These questions usually include whether the children will get to participate in the extracurricular activities (sports, performing arts classes, music lessons, art classes, etc.) they did before the divorce, expanded…

Divorce is a time of transition, which can bring about changes in your professional life as much as it can in your personal life. Perhaps you are one of the ones, like many, who have decided that a fresh start…

Becoming a single parent, especially after being married and having a partner to share in the physical and emotional labor, can be a challenging transition. The role of single parent, even for those in a healthy co-parenting relationship with their…

If you are in love and looking to plan a life with your partner, congratulations. This is an exciting time for you both, and the goal is that the relationship will stand the test of time. However, a recent study…

Divorce is not only about protecting assets and deciding who will keep the marital home afterward. Divorce is about re-envisioning your life following the end of a marriage and about discovering who you are today. This may include learning about…

The expression “in sickness and in health” is common in wedding ceremonies of all faiths. So when most people recite these words, it is probably safe to assume that they envision themselves married at a time when the unthinkable may…

Instead of marrying, increasingly, more couples are choosing to cohabitate outside of marriage. Many couples decide this for a variety of reasons, including testing the waters about whether they are suitable to live together as a couple or don’t believe…

Divorce can be a relatively straightforward process if you and your spouse are on good terms and can agree on certain issues in your case. In such a situation, you can file for an uncontested divorce which is often a…