As the baby boomer generation hits and surpasses age 50, an increasing number are choosing to divorce in New York as well as across the rest of the country. For this age group, an important consideration is how their divorces might affect their retirement accounts, and a collaborative divorce process may be in order.
Many people who are going through a divorce have immediate cash needs, and they thus may not be as attuned to future considerations. Failing to take into account such things as retirement pensions in the discussion may have a very problematic impact, however. People who divorce after the age of 50 have less time to save again for retirement, and poor choices in divorce can lead to significantly damaging future problems.
While only 4 percent of couples who are older than 50 are living in poverty, 14 percent of divorced men are living below the poverty line when they divorce past age 62. In many cases, this can be attributed to splitting their retirement pensions and accounts with their former spouses. Many women in that age group who divorce are also more likely to live in poverty. When couples choose to get divorced, they may want to try to sit down with one another and work out a solution that benefits them both.
Divorce at any age may be emotionally challenging. People who are nearing retirement age may need to consider the impact any result may have on their ability to fulfill their future needs in their retirement years. With the help of a family law attorney, a person may be able to negotiate an agreement that is fair to both sides, while also protecting his or her own retirement savings. A family law attorney might be able to help reach an agreement while helping to protect his or her client’s rights and future well-being.