It Texas, the trend of “gray divorce” is leading to more marital breakups as people get older. For various reasons, people are taking a harder look at their future when they pass the age of fifty, and the result is more divorces. However, divorce at this stage of life can have profound impacts on retirement planning for both spouses.
Obviously, having to use the same assets to fund two different households will stretch retirement savings. Divorce means that both spouses are at a greater risk for an underfunded retirement. It may mean that spouses need to work longer after they are divorced as the parties may not have enough time to play catch-up from their losses after the divorce.
This increases the need for planning both before and after a divorce. A financial professional can help provide the advice that is necessary so one can get their retirement planning back on track after the divorce is final. People must recognize that their retirement goals may need to change due to their new situation. Nonetheless, divorce does not have to mean that people cannot afford to retire. Generally, the best way to deal with this situation is through education so that people can be empowered to make the right decisions. They should also have a general idea of the impact before they negotiate the divorce agreement.
An attorney with experience in high-asset divorce / asset division may assist with matters of asset division so their client is not left without options or the ability to retire after a divorce. He or she could look out for their client’s interests in helping them secure their share of the retirement savings to help them once they plan to stop working. If necessary, the attorney might take the case to court to make sure that the client gets what he or she deserves financially in the divorce.