How Does a Late-in-Life Divorce Affect Retirement?
More and more couples in the United States are divorcing later in life. Some couples wait until after they have raised their families, so they do not have to contend with child custody or child support issues. But those couples divorcing in their 50s and 60s face other challenges. What happens to the assets you have accrued over the years? How does divorce later in life affect retirement? Couples who find themselves in the throes of divorce midlife should thoughtfully consider the financial implications of divorce and take certain steps to plan for their financial future.
Your finances post-divorce
After years of earning an income and accumulating assets, facing the financial realities of life post-divorce can be challenging. Dividing up a home, property, and savings accounts leaves each spouse with half of what they had when they were married. This reality may not mesh with what you envisioned for your post-divorce single lifestyle.
Most couples face increased living expenses due to separate living quarters. The cost savings inherent in joint homeowners or renters insurance, shared automobile insurance policies, joint credit card and banking fees, and shared property taxes are no longer available. This is true for all divorcing couples. But the financial impact of divorce is greater on those who divorce later in life because when couples divorce in their 50s and 60s, they have fewer working years ahead of them to rebuild their assets. And that can significantly impact their retirement years.
Who keeps the family home?
Many divorcing couples face the question of who – if anyone — will keep the house after the couple divorces. The emotional nature of this decision can make it a difficult one for many couples. After years of a marriage spent living in a home together, where you may have raised a family, it can be tough to let go. But holding onto a house for emotional reasons may cost you financially. Home maintenance expenses, insurance, and property taxes only add to the financial burden of owning a home, which may require dipping into retirement savings or other assets.
Are you facing the prospect of divorce? We can help
Divorce at any age can be challenging both emotionally and financially. At the Milwaukee family law firm Bandle & Zaeske, LLP, our divorce lawyers understand that divorce is uniquely personal. Our experienced team is knowledgeable in all aspects of Wisconsin divorce law and we work closely with couples throughout the entire divorce process to reach the most favorable solution in each situation. Let us help you. Schedule a consultation with one of our family law attorneys to discuss your case – contact our office at 414-359-1424 or online.