A new trend known as gray divorce has hit the US. According to experts, many boomer-generation couples say that finances are the main reason they seek divorce. According to recent studies, many older couples “never had financial independence enough to divorce.” For many older couples, the children are grown and gone, and each individual wants to travel or live life on his or her own. If they can afford to, these couples often choose to divorce.
According to a Bowling Green State University study, 25 percent of all new divorce filings were by those age 55 and older. The study authors believe that this increase may be the result of changing attitudes toward marriage and monogamy. In the past, about 10 percent of divorce filings involved those 50 or older; in 2010, an estimated one in four people who divorced were older than 50. Study authors conclude, “In an era of individualism and lengthening life expectancies, older adults are more reluctant now to remain in empty-shell marriages.” One financial planner agreed, stating, “It’s a new way of living out the midlife crisis…Many married couples now have two incomes, they can survive financially on their own.”
Dividing Assets Near or After Retirement
Divorcing couples who are nearing retirement do not want to outlive their assets, so they will need help creating an equitable division that protects the retirement of both individuals. One major issue to consider when dividing retirement assets is taxation. Many experts recommend a direct transfer of assets from one IRA to another. According to one CPA and CFP professional, “With a trustee-to-trustee transfer, your spouse will not risk being taxed on the distribution to you, and you will not be taxed on the transfer.” However, every divorce situation is different. This is why it is crucial that you speak with an experienced divorce attorney who can guide you on the best way to divide assets.
If you are considering a divorce and are near or in retirement, speak with the experts at Men’s Legal Center. No matter what your age, you want to ensure you have financial stability for life after divorce. Our team of attorneys can help you determine an equitable division of assets to ensure you have what you need post-divorce. Give us a call today to learn how we can help you during this difficult time and ensure you have what you need to live a happy life after your decree is final.