Baby boomers are divorcing at a higher rate in the U.S. compared to other couples. When older couples get divorced, there are different factors that need to be considered, especially regarding their finances.
With the number of baby boomer divorces doubling during the last two decades, there has been much discussion in the news over why the divorce rate has increased. There are a variety of reasons that older couples get divorced. What's important for these couples to remember is the importance of planning for their financial future after the divorce is finalized.
One of the most common concerns among older couples getting divorced is the impact it will have on their retirement plans. This is a common concern that should be addressed because retirement plans may have to dramatically change for baby boomers that get divorced.
During marriage, many couples plan for retirement together. When these couples divorce, they have to think about how their retirement plan will be funded and what plans may need to be changed. Planning for retirement can cost much more for a single individual than a married couple because the couple has to split their retirement account to support two lifestyles now instead of one when they were married.
It is important for baby boomers and older couples to think about their retirement accounts and other financial accounts once they are divorced. It is also important to create a financial plan to make sure individuals getting divorced understand the financial implications of their divorce and to address how their lifestyle will be funded once they are single.
Baby boomers getting divorced should consult a divorce attorney to discuss their specific case and to figure out what factors need to be considered before and during divorce negotiations.
Source: Livingston Daily, "Divorcing boomers face retirement woes," Rodney Brooks, Feb. 26, 2013