Careful planning required in navigating a gray divorce | Lane & Lane, LLC
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Careful planning required in navigating a gray divorce

Countless New Jersey couples spend many years in marriages, building retirement plans that will allow comfortable lives after the ends of challenging careers. However, the number of older couples who decide to get divorced has grown significantly, and records indicate that approximately one-quarter of couples over the age of 50 file for divorce. Along with the emotional trauma typically associated with a divorce, the financial impact can be severe, even more so for older couples.

When couples split in the time leading up to their golden years, carefully planned and managed retirement plans can become unraveled in no time. Both spouses will have to adjust their retirement expectations and do some meticulous financial planning. While married, most couples share housing costs and other expenses. However, after a divorce, each spouse will have a separate household to run while also being faced with the need to create a new retirement plan.

It is vital for each spouse to sit down and estimate post-divorce expenses and needs. Lifestyle changes may be necessary, and in some cases, spouses may have to re-enter the job market after many years. Plans will have to be made to cope with living expenses without eliminating or lowering contributions to retirement plans.

Navigating a gray divorce involves many more difficulties than mentioned above, and retaining the services of an experienced divorce attorney may be advantageous. Along with his or her legal knowledge, a New Jersey lawyer may have other professional resources to assist with financial planning, explain tax implications and more. A gray divorce is not something to rush into, and certainly not something to pursue without skilled legal counsel.

Source: thefiscaltimes.com, "Don't Let a Late-Life Divorce Ruin Your Retirement Plans", Janna Herron, May 4, 2016

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