Divorce can be more costly as couples age

On Behalf of | Dec 5, 2017 | Divorce, Firm News |

The financial implications of ending a marriage are understandably serious, but this should not stop Nebraska couples from seeking this option when necessary. With careful planning, most people can secure their financial stability after a divorce. However, one group of individuals might struggle with money post-divorce more than others.

As the average divorce rate across the United States has decreased over recent years, couples aged 50 or older are separating at higher rates. Currently, one out of every four couples in this age group will eventually go on to divorce. Unlike their younger counterparts, recovering financially after significant life changes becomes difficult, particularly when looking at retirement savings or when either party is no longer working.

Living on a fixed income — such as in retirement — can further complicate matters. Retirement savings that were intended to support both people must be split, and if not done correctly, it could lead to penalties and hefty taxes. Retirement funds also tend to stretch farther when supporting two people under the same roof rather than in separate households.

Couples who decide to divorce later in life tend to shun contested divorces over fear of the associated costs. Instead of fighting for what they are owed, many choose to concede early on and accept a smaller share of marital assets. This might be especially true if when one party has more personal assets to their name or is still working and earns a significant highly income.

Deciding to file for divorce is rarely an easy decision, and many Nebraska couples agonize over the details before moving forward. Financial concerns are one of the biggest hindrances to filing. However, with careful planning, constant attention to detail and the guidance of counsel experienced in complex family law matters, most people can come out of a divorce with financial peace and security.

Source: Forbes, “The Five Most Taboo Topics In Retirement: #4 Divorce”, Robert Laura, Nov. 29, 2017