Divorces impact retirement picture for older couples

Divorces can be difficult to manage financially at any age. The closer a Wisconsin couple is to retirement the more potential there is for their retirement plans to be interrupted.

With the divorce rate increasing for those 50 years and older, it becomes even more crucial for divorcing couples to structure the divorce’s financial settlement in a manner that wreaks the least havoc on their financial planning for retirement. Younger people have more time to recoup any financial losses from a divorce, but seniors may not have this luxury.

An equitable property division is a good place to start the process. The spouse who gets the house may need to sell it, move into less expensive accommodations and invest the difference with an eye to a more comfortable retirement. Additionally, with both spouses likely seeing decreased income, they may want to develop new spending plans so they can save more for retirement.

Senior couples may already have retirement funds in place. If any money is transferred to the other spouse in the divorce settlement, then the spouse receiving the payment must file documents to get these assets into their name or accounts as soon as possible. If one spouse earned substantially more income, the other spouse may be eligible to draw upon their Social Security benefits at retirement age if the marriage lasted at least 10 years.

Divorces can be emotionally devastating; the financial implications can turn into a double whammy. Anyone getting divorced may wish to consult with a family law attorney who may be able to help make sure their interests are protected in the settlement.