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Gray Divorce Can Lead to Significant Retirement Plan Setbacks

divorce

It has been widely assumed for generations that once a couple is married for 20 years or more that they are most likely going to spend the rest of their lives together. People who get married, raise a family and work towards retirement together tend to get comfortable with their lives and find happiness as their children grow up and their retirement plans move from a distant blip on the radar of life to a growing light at the end of the tunnel.

However, that has all changed over the course of the last generation, as statistics available from several sources indicate that the divorce rate for people who are 50 years old or older has doubled between the years of 1990 and 2010. These divorces are affecting the Baby Boomer generation, and psychologists and other professionals believe that this phenomenon is due to the fact that people are living longer and many are experiencing a second midlife crisis that can lead to the decision to end their marriages.

Recently, a report appeared in the USA Today that laid out some of the serious financial difficulties that people who pursue a ‘gray’ divorce can encounter. These financial difficulties mostly relate to retirement plans, as when people who fit this demographic decide to get divorced, their retirement savings and other assets need to be divided. This alone can lead to the need to delay retirement, go back to work or to make other difficult choices.

While the specific estimates regarding the cost of living alone versus continuing to live as a couple vary to some degree, most experts tend to place those estimates between 30 and 50 percent higher than if the couple remained together. That makes sense when one considers that instead of paying for one home, the couple is now paying for two and because several other expenses that were shared are now paid by each individual.

As such, many people are now recommending that those who are over 50 and pursuing a divorce should obtain the help of certified financial planners as well as divorce lawyers. Taking this step can help both spouses understand the real and longer-term costs associated with ending this type of a marriage, and this knowledge can help those spouses work together to find a resolution to the case without prolonging a fight and exhausting more resources on expenses related to the divorce.

People in this position also need to find the help of San Diego divorce lawyers who understand how to work through this process with the idea of protecting as many assets as possible for people to make use of after the divorce case is complete. If you are one of these people, you need to make sure that you work through the case as efficiently as possible without giving up your legal rights. Contact the attorneys at the Men’s Legal Center today to schedule an initial consultation.