Are you contemplating divorce as your retirement looms on the horizon? Dissolving a marriage is a challenging decision, and it becomes even more complex when it coincides with your retirement. To guide you through this intricate period, here are some key considerations regarding the timing of divorce in relation to your retirement.
Why Get Divorced Before Retirement:
Avoiding Simultaneous Life Changes:
Undergoing two major life changes, such as divorce and retirement, concurrently can be overwhelming. It might be advantageous to complete one of these transitions before embarking on the other. Unlike retirement, which often has a fixed date dependent on financial readiness, divorce allows you and your spouse to choose the timing.
Financial Flexibility:
Divorcing before retirement offers more financial options. While divorcing spouses may experience a reduction in household income, which can range from 23% to 41%, if you’re still employed, you have the opportunity to compensate for this loss before retiring. Though you may need to divide shared assets, this approach allows you to regain control over your dedicated retirement savings.
Control Over Retirement Funds:
Divorcing before accessing shared retirement accounts grants you greater control over how these funds are allocated or invested. If your soon-to-be ex-spouse intends to withdraw a substantial amount for personal expenses, dividing the assets before such actions occur ensures you retain control over your portion of the retirement savings.
Why Get Divorced After Retirement:
Emotional and Mental Readiness:
Retired individuals may find it emotionally and mentally easier to initiate divorce. The absence of career stress and caregiving responsibilities allows you to focus solely on your divorce and your personal priorities.
Differing Retirement Timelines:
If you and your spouse are retiring at different times, the timing of spousal support may be influenced. A retired spouse with a lower income may be eligible for increased support, whereas a retired spouse with a higher income may face reduced court-ordered support obligations.
Accurate Financial Assessment:
Predicting your financial needs during divorce negotiations can be challenging. Most Americans struggle to accurately gauge their retirement requirements and resources. After retirement, you gain concrete insights into your monthly income needs, future plans, and expenditure patterns, enabling you to make more informed decisions.
Seeking Guidance:
Deciding when to pursue a late-life divorce is intricate, involving emotional considerations and financial consequences. To strike the right balance that suits your personal circ*mstances, initiate a consultation with a divorce attorney experienced in divorce and retirement matters within your state. They will collaborate with you to assess your case and financial stakes under both scenarios.
The Law Offices of Heidi A. Gifford is poised to assist New York residents with their divorce needs, whether you need a divorce lawyer in Saratoga Springs NY or a family law attorney in Johnstown NY. Contact us today to schedule an appointment and begin obtaining the information required to make the best decision for a stable and prosperous future.
