Discussing the financial aspects of divorce can be stressful for anyone. When one or both of the divorcing spouses are over the age of fifty, a divorce can do more than just affect who gets the house or how the income is split. It can also affect your hard-earned retirement savings.
Divorces among older couples may put the spouses at a greater risk for financial instability than divorces among younger pairs. Studies have found that while divorce rates among Americans ages 50 and older are growing, 30 percent of divorced women over age 62 live below the federal poverty line. Fourteen percent of men who divorce at this age are impoverished, as well. But, for married couples who are 62 or older, the poverty rate is only 4 percent.
What happens to financial security when older couples divorce? Several factors are at play.
First, divorcing couples may, like couples of any age, be more focused on cash flow and “everyday” assets like the house and the car. Paying close attention to retirement accounts may fall to the bottom of the priority list. But, since a retirement plan often represents an older couple’s largest asset, treating it seriously merits serious consideration and the help of experienced professionals when needed.
At the Law Offices of Paul A. Boronow, PC our experienced Long Island divorce attorneys can help you understand the tax consequences of your divorce. We can help you consider your options and reach a settlement that meets your needs.
Contact us today at (516) 227-5353 to learn more.