An increasing number of older adults in Minnesota and around the country are choosing to get divorced. While divorce rates have fallen for most age groups, they have increased for people who are over the age of 50. Before older people go through with ending their marriages, they should carefully consider some of the impacts that it might have.
People who are drawing near to retirement age or who have already passed it may be financially devastated by divorces. If they are not yet retired, they will have greatly shortened times within which to save for retirement. If they have already retired, getting divorced may result in both spouses suffering greatly reduced circumstances.
Divorces are also expensive and may be even more so if there are complex issues that are extensively litigated. People may also have to deal with complex property division issues and divide their interests in diverse asset classes, including their retirement account balances, bank accounts, stock holdings, real estate and businesses. In some cases, divorces are necessary such as when the marriages are abusive. In others, couples might want to try to rebuild their relationships if it is possible.
At the end of a marriage, people may have to contend with multiple legal issues. These can include child custody, child and spousal support, property division and debts that must be resolved. When people have been married for years, they may have accumulated substantial holdings that necessitate additional work to help to minimize any resulting tax consequences. People who want to go through with their divorces may want to talk to financial advisers and family law attorneys about the potential financial ramifications. They may then want to work closely with their attorneys to craft agreements that help to protect their finances and their future abilities to retire on time.