Divorce is a complicated topic at any age, but for people who are 50 and older, it is even more difficult as the prospect of a new life and dramatic changes can be intimidating. To add another layer of fear is how it will impact the prospect of retirement.
It is one of the few demographics that is experiencing a statistical rise and people should be prepared regarding the financial aspects of the process and its connection to retirement. A law firm that helps people with all areas of divorce can be of assistance.
Statistically, the number of divorces for younger people has drastically declined since 1990. For those 50 and above, it is twice what it was. For people 65 and older, it has tripled. Whereas it was once unusual for people who had long-term marriages and were older to divorce, it is becoming more common. There are many issues that should be considered and they differ from a younger couple’s divorce worries. Since most people are of moderate means and in the middle class, economics is problematic.
One of the top three dangers to financial independence is a divorce. A spouse who was not the breadwinner will not have the capability to earn as much as the person who worked. This can delay the decision to retire, if not eliminate it completely. Difficulty in adapting to the new circumstances is also common. In some instances, the couple already had a financial advisor, but that advisor is unwilling to get in the middle of a complex divorce. It can then be necessary to find a new advisor.
Louisiana is a community property state and retirement plans as well as other assets will generally be split evenly. Taxes are a problem as many spouses who were not financially-oriented and left those considerations to the other spouse can find themselves having tax issues. When getting a divorce, the situation can be overwhelming regardless of the person’s age. If it is an older couple, the simple matter of not having school age children might be expected to make the case easier. In truth, there are other factors such as retirement that can be even more complex. Regardless of the person’s age, having legal advice from the beginning is a must. A law firm that handles family law and divorce should be called as soon as possible.