Divorce After Age 50 Can Impact Retirement

People who are engaged in New York usually imagine themselves getting married and then staying that way till death do they part. The reality is that, sometimes, divorce cannot be avoided. In fact, in some situations, spouses end up breaking up when they are near their golden years. Here is a glimpse at what people can do to protect themselves financially if they decide to get divorced over the age of 50.

First, older individuals going through the divorce process may benefit from conducting cash-flow analyses right away. These analyses will show them how much money they will be bringing in every month, following the divorce versus before the divorce. With this information, they can effectively determine if they should trim their expenses and/or increase their earnings to stay in the positive financially, after getting divorced.

Second, it may be beneficial for older divorcing individuals to recalculate how much they need to save for retirement. The great news is that anyone over 50 can increase their monthly contribution to a 401(k) or an IRA to $6,000 more. This may help older divorcees to catch up when it comes to saving for retirement.

The divorce process can understandably be difficult for people of all ages. However, addressing issues like property division can be uniquely challenging for those who are breaking up after 50 years of age. If possible, the spouses may want to try to resolve their differences at the negotiation table or in mediation sessions, thus avoiding further court intrusion. An attorney in New York can guide a divorcing spouse through these alternative processes to traditional divorce litigation, making sure that his or her best interests are protected every step of the way.