In California and around the country, an increasing number of people who are at or over the age of 50 are choosing to divorce. When people are thinking about getting divorced when they are near to retirement or after they retire, there are some important things that they should consider before they make the decision.
Getting divorced when people are retired and are no longer working can be financially devastating. Divorces can be expensive. If there are extensive issues that are litigated, the legal costs may increase and the process may be long and drawn out. Even if people are able to negotiate agreements through mediation, they should be aware that they will have to divide all of their assets, including their retirement accounts, real estate holdings, bank account balances and stock options. This may leave both parties facing their retirement years with substantially reduced standards of living.
There are some situations that might prompt late-in-life divorces. For example, if the marriages are abusive, divorces may be warranted. However, people who simply have grown tired of their marriages might want to consider trying to work things out before moving forward with their divorce plans.
Older people who are considering ending their marriages might want to talk to financial planners and experienced family law attorneys about what divorces might mean for their finances and abilities to retire. It may be important for people to gain a clear understanding of the impacts that divorces might have on them. If they still want to get divorced, the attorneys may work together with the financial planners to craft proposed settlement agreements that might best protect their clients. They may work to divide the property in such a manner that their clients may minimize tax consequences while also preserving their ability to retire on time. Attorneys may reach settlements without having to go through extended litigation in many cases.