Divorcing couples all have their own unique reasons for undergoing a split, and each divorce is likely to come with its own unique challenges as well. If you are seeking a divorce later in life, then the fate of your retirement is sure to be a concern at the forefront of your mind.
Whether you are preparing to bring your career to a close or you are already in the midst of retirement, it is important to understand how divorce will affect your plans. Knowing the potential implications and options ahead of you will allow for a smoother “gray divorce.” This is a term used by many when referring to divorces that occur near, or surrounding, retirement years.
How does divorce affect your retirement?
The process of separating property in a divorce calls for equal division of marital assets, which includes contributions made to retirement accounts over the course of a marriage. Even though the statutory presumption in Indiana is for an equal split of assets, including retirement, between you and your soon-to-be ex-spouse, keep in mind that maintaining two households is more expensive than one. A retirement lifestyle that you are able to afford together might not be possible separately.
What can you do to preserve your retirement after gray divorce?
The division of marital assets in a gray divorce is likely to disrupt the retirement of one or both spouses. Ensuring that both parties are able to live comfortably after divorce requires careful financial planning and divorce negotiation. Adjusting to life after a gray divorce can be difficult, especially if you intend to follow your retirement plans without interruption. Taking the right steps before and during the divorce process can ensure a stress-free transition.