An increase in the number of divorces after 50

Posted by Cameron Heron on July 26, 2011 Leave a comment (0) Go to comments

While divorce has declined overall in the past 20 years, according to the National Center for Family and Marriage Research, it has doubled for couples aged 50 and over. The divorce rate for older couples is now 9.74 per 1,000.

Although women are more vulnerable to financial difficulties after divorce, women (of all ages) are more likely to initiate divorce. Sometimes this is in response to abuse. For many older women, it may reflect a desire to wait until children have left home before she feels free to pursue her own goals.

Today’s seniors are typically healthier and more active than past generations, which means they will likely have many more years ahead of them. Rather than heading into retirement with the nest egg they built throughout their years together, divorcing seniors must carefully consider their financial futures. Financial planner Steven Van Metre has some advice for couples in their later years:

When funds are withdrawn from retirement plans, taxes must be paid. If a retirement fund is part of a negotiation in exchange for other properties, it’s important to consider the value of the retirement asset after taxes.
While it may be tempting to draw down retirement assets early, those in their 50s or 60s have little time to rebuild that asset. If at all possible, don’t take cash from retirement funds.
Van Metre cautions older spouses who will need to rely on alimony to protect themselves from the early death of the support-paying spouse with a life insurance policy. You can also put alimony into a retirement plan.
Depending upon how long you were married and a number of other factors, you may be able receive your ex-spouse’s pension or Social Security benefits despite your divorce status.

The good news for those getting divorced after 50 is that most people (76 percent) report that divorce was the right decision for them, and that they are enjoying their freedom and finding fulfillment in their new life. Ensuring your financial security makes that outcome even more likely.