Moving Toward Retirement…and Toward Divorce?

Many Americans are not averse to divorce. Roughly one in three marriages ends in divorce, and the divorce rate for couples over 50 has doubled since 1990. A strongly individualistic generation, the Baby Boomers are reinventing marriage trends as they retire from the workplace.

A recent study from Bowling Green University made some interesting findings concerning late-life divorces, including the following:

• Remarriages are 2.5 times more likely to fail than first marriages.
• Marital history, education and economic resources can increase — or decrease — the risk of divorce.
• Longer lifespan and better health increase the likelihood that marriage will end due to divorce, not death.

If you are over 50 and considering divorce, the issues you face are different from someone who is 25 or 35. Given your proximity to retirement, you have fewer years to rebuild a nest egg, and long-held dreams of life after retirement may be permanently out of reach.

Consider the following tips if you are thinking about late-life divorce.

• Be nice: You may have spent the last four or 40 years with the person you are divorcing. While facing the future apart, you both need to preserve wealth and avoid a drawn-out, expensive divorce battle. Consider mediation to keep things friendly.
• Know what you need: Crunch the numbers and understand the budget you need to move forward successfully. Make sure you have a good idea of all assets, accounts and liabilities. Keeping the house may not be a smart move at this time in life — talk to a financial planner about financial strategies that will deliver the security you need.

If you are divorcing and are over 50, talk to an experienced attorney and be sure to address estate planning issues when your divorce is granted. When you are ready to move on, there is no time like the present.