Divorce and Retirement
September 15, 2022
We understand that divorce is something no one should have to plan for, but it is an unfortunate circumstance many people will have to face. While divorce can impact someone in many different ways, let’s focus on the financial impact it can have, especially in retirement.
“Divorce during your retirement years, often called gray divorce, can complicate your retirement plan. Retirement assets may need to be divided, and alimony could be granted after a long-term marriage ends.”1
Here are some of the ways going through a divorce in retirement could impact you:
- Your Social Security payments could change
- Your retirement benefits could change
- You could incur legal fees
- You could have to divide your assets
- You may have to pay your spouse alimony
- You may have to find a new place to live
Now here are a few tips to keep in mind if you’re going through a divorce:
- Create an inventory of your assets
- Factor in the tax consequences of all your decisions
- Determine your healthcare plan options
- Determine the added expenses you could incur without your spouse’s income
- Have a financial professional on your team
Divorce is a difficult subject that many people don’t like to discuss, but it is a life change that you can get through. We can help you navigate this life change and understand how it could impact your financial future.
1. https://money.usnews.com/money/retirement/baby-boomers/articles/navigating-divorce-in-retirement