The growth of gray divorce continues with no signs of slowing down. Fifty, sixty, and even seventy something spouses are pulling their respective plugs on marriages late in life. While many of these dissolutions enjoy the spoils of longtime careers with plentiful pensions and 401ks, more and more elderly people are expressing concern about their financial stability.
More than 70 percent of senior citizens express concern about inflation and the amount of money they will have for new chapters in their lives. Far too many failed to plan effectively for retirement, let alone a possible divorce where assets set aside for retirement become fodder for division.
Facing an uncertain future
The divorce process is anything but predictable. Issues become complex when it comes to one spouse having more knowledge, if not savvy when it comes to the financial picture. The spouse not as experienced with the totality of assets likely experience some sort of fear of an uncertain future. They may just want to get the process over with to preserve as much financial stability as possible.
Soon-to-be divorced spouses should prepare by paying attention to all the details. Knowledge is power and can provide a sense of control of the process. Look at the upsides and downsides, particularly when it comes to both assets and debts. Being active in the process can provide a sense of control and confidence.
The most complex process in divorce proceedings is dividing assets. Add to that significant penalties and taxes, dwindling down the money set aside for retirement and lose of tax-deferred growth and potential survivor’s benefits.
Divorce can be traumatic, regardless of the age of the couples. Proactive steps can provide protection during uncertain times.