Divorce Challenges for Older Couples

 Posted on March 10, 2017 in Divorce

While the divorce rate has been steadily declining for most age groups, those nearing retirement age (the Baby Boomers) have seen a drastic increase over the last couple of decades. In some ways, this could be a positive thing; it attests to the improved independence of women and the improved quality and longevity of life. There are some potential drawbacks, especially when it comes to retirement. If you are planning on divorcing later in life, it is important to be aware of what may lie ahead.

Divorce Later in Life Can Impact Retirement

Most couples who have been together for two or more decades have prepared for retirement together. This means they have, in many cases, created a pension plan that is designed to support one set of bills, one mortgage, and one set of living expenses. When divorce occurs near the retirement stage, this can throw everything into disarray. The retirement plan must now be divided, and each party will have their own set of bills and living expenses. There is a good chance there will not be enough to go around, and with less time to recover from this financial hit, later-life divorcees may be at serious risk for divorce-induced poverty.

Dividing Your Retirement Plan in Divorce

Like most assets in an Illinois divorce, retirement plans and pension plans are split between the two parties. Despite the common misconception, this does not necessarily mean assets will be split evenly down the middle. Instead, Illinois divorcees divide marital property equitably (fairly), which can be a concept that creates a lot of confusion and contention. To ensure you get your fair share, contact an experienced divorce lawyer for assistance.

Preventing Divorce-Induced Poverty

In addition to having an attorney on your side during the divorce, you may want to do some investigating of your own. Find out what your expenses will be and compare it to your estimated settlement amount. Do the two line up, or is there a major disparity? If you find the latter to be true, it may be worthwhile to sit down and consider some alternative options. Can you wait for the divorce and work on your debts? Is it possible to still divorce but delay your retirement so that you can put more money aside? Could you take on boarders or dog-sit to make up any income deficits? Only you know which options will work best for your situation. Just be sure you have carefully considered each one.

Contact a Divorce Lawyer

If you are prepared to move forward with your divorce, or just need some general advice on how to proceed, contact an experienced Rolling Meadows divorce attorney. Schedule your free initial consultation by calling Cosley Law Office at 847-253-3100 today.

Source:

https://www.washingtonpost.com/business/divorcing-late-in-life-dont-let-it-destroy-your-retirement/2016/12/02/bafaab96-b5bf-11e6-959c-172c82123976_story.html