Mitigating the Financial Impact of Late-in-Life Divorce

November 25, 2011

Mitigating the Financial Impact of Late-in-Life Divorce

According to the Centers for Disease Control and Prevention, the U.S. divorce rate in 2009 was 3.5 divorces per 1,000 people. Taken by itself, this data reveals that the U.S. divorce rate has slowly decreased in the past few years. However, the data may be skewed by the recent recession -- many would-be divorced couples have remained married for the financial benefits it provides.

Financial Challenges for Late-in-Life Divorce

Married couples who have been married most of their lives generally settle into retirement with their spouse and live out their remaining years. However, the U.S. Census Bureau reports that 17.2 percent of divorced men and 14 percent of divorced women are over the age of 55. Many "baby boomers" have decided to go their separate ways as they enter their retirement years, hoping for something more during senior years.

One major obstacle for older couples considering divorce is potential post-divorce financial woes. Therefore, divorcing couples should carefully consider their post-divorcefinances, but it is especially important for those who are further along in their lives as they have less time to recover their financial stability.

For example, a spouse may lack financial savvy and might struggle paying bills or setting his or her own budget. Additionally, if one partner was the primary income earner during marriage, the other spouse may struggle to be self-supporting as they advance in age.

Money Tips for Divorced Couples

There are many things older couples can do to mitigate the unique financial challenges that come with a divorce. Fox Business suggests that people consider:
-Hiring an Attorney: Experienced divorce attorneys can assist with alternate means of resolution, such as mediation or arbitration, which reduce the costs of divorce itself.
-Practice Budgeting: Developing a realistic budget before the divorce is final to prevent overspending down the road (this includes carefully spending any settlement award).
-Prepare for Merged Debt: Debt incurred as a couple will be equitably distributed between husband and wife, so debt repayment must be built into a new budget.
-Residence Responsibility: Be sure any home, apartment or condo is affordable -- realize less space is probably more practicable for a single person's budget.

Anyone considering divorce should discuss their financial situation with a qualified family law attorney. Personalized help for this late-in-life transition can be invaluable throughout the divorce process.

Article provided by Law Offices of Bruce A. Lipshy
Visit us at http://www.lipshylaw.com