When a marriage ends, it will bring changes to virtually every area of a person’s life. These changes can be particularly complicated for anyone who is older and nearing retirement age as divorce will require the division of all marital property. In most cases, this includes long-term savings a California couple was setting aside for their golden years. As one would expect, this can require major shifts in expectations and plans for retirement.
One of the main concerns in any divorce is money. Gray divorce is a term to refer to a divorce that involves those over the age of 50, and it’s becoming more common across the United States. If one or both spouses have already been married at least once, the division of assets can quickly become complicated with the financial stakes high.
An important consideration may be the fate of the family home. Depending on the circumstances, it may not make sense to try and keep it. Tax implications and the cost of upkeep on one income should be calculated. A California gray divorcee will also have to think about things such as alimony, adjustment of retirement plans and when he or she is planning to stop working.
A divorce will change retirement plans, but it doesn’t have to devastate them. With planning and preparation, it is possible to secure terms that will allow for a strong and stable future. The key to this is a comprehensive and reasonable financial settlement negotiated with long-term well-being as the main goal.