Divorce may have negative impact on retirement

| Oct 21, 2016 | Divorce

The dissolution of marriages in the United States, including in Massachusetts, increased during the 1970s and the 1980s, when baby boomers became adults. As this segment of the population reaches retirement age, they are still getting divorced. Unfortunately, the divorce process appears to have a disproportionate impact on women.

The divorce rate for Americans who are younger has actually dropped in recent years. Still, failed marital unions among individuals above the age of 50 was two times higher in 2010 than it was in 1990. Thus, the risk for dissolving a marriage has stayed constant overall. Nearly 50 percent of marriages may end up collapsing.

This might be why one out of five people in America over the age of 65 is still working. This figure is two times more than during the early 1980s. It is also the highest number since Medicare was created.

Unlike the dissolving of a marriage early in one’s adult life, a later divorce can, unfortunately, have a major effect on one’s individual finances. This often forces individuals to delay getting retired. Appropriate legal guidance may help individuals in Massachusetts to fight for their fair share of assets and make informed decisions that will protect their finances long-term. If two people who are getting divorced can find common ground, they may benefit from going through negotiation or mediation rather than litigation, which can be more stressful and costly. Otherwise, litigation is necessary, in which case a judge will make important decisions for the couple concerning asset division and property distribution.

Source: bloomberg.com, “Divorce Is Destroying Retirement“, Ben Steverman, Oct. 17, 2016