It may be surprising to know that the overall rate of divorce is declining in the United States. However, the divorce rate for spouses over the age of 55 in Colorado and across the country has risen dramatically over the last two decades. A divorce late in life has the potential to upend even the most durable retirement plans. Here are some ways to prevent a gray divorce from sabotaging retirement.
Identify assets and focus on how they will be divided
Some of the most important decisions in any divorce revolve around marital property and assets. Colorado is an equitable distribution state, which means property and assets will be classified as either separate property or marital property. The marital assets are then divided equitably, or fairly, between spouses. Take into consideration which assets are liquid and what Social Security benefits the spouse may be entitled to.
Financial education and budgeting
Just thinking about a later-in-life divorce can be stressful, so it can be easy to let emotions cloud judgment and decisions. This is why financial education is so important during a divorce. Those navigating a gray divorce often have less time to replace savings that were lost. It may be necessary to cut unnecessary spending, modify living expenses or even delay retirement. Creating a budget can help a person gain an understanding of the overall financial.
Seek the help of professionals
As important as retirement and financial planning was during marriage, it is even more important when the marriage ends. Those in Colorado who have questions or need help with any aspect of divorce could benefit by meeting with a legal representative. A knowledgeable family law attorney can guide individuals through the divorce process while ensuring personal rights are protected.